glaxosmithkline plc - ehs report - 2004corporate responsibility: report 2004 caring for the...

Environment Health and Safety Report 2004 ....................................................................1

Caring for the Environment ................................................................................................2

Letter From the Vice President, EHS ..................................................................................4

EHS Management ................................................................................................................5

Management Framework ....................................................................................................7

Vision ....................................................................................................................................8

Policy ......................................................................................................................................9

Environment Health and Safety Policy ................................................................................9

Employee Health Policy ....................................................................................................10

EHS Management Organisation ........................................................................................11

Governance Organisation ................................................................................................11

Corporate Environment, Health and Safety Organisation ................................................12

Employee Health Management Organisation ..................................................................15

Partner Organisations ......................................................................................................16

EHS Management System ..................................................................................................18

Structure ..........................................................................................................................19

Business Processes ..............................................................................................................20

Programmes ........................................................................................................................23

EHS Plan for Excellence ......................................................................................................33

Strategy............................................................................................................................36

Themes ............................................................................................................................38

Targets ............................................................................................................................40

Stakeholder Engagement ..................................................................................................41

Benchmarks ........................................................................................................................42

Audits and Certification ....................................................................................................43

Environment Costs ..............................................................................................................45

Training and Awareness ....................................................................................................47

CEO’s EHS Excellence Awards ............................................................................................48

Reward and Recognition ....................................................................................................55

Injury and Illness Milestones ............................................................................................55

CORPORATE RESPONS IB I L I TY

Contents

i

Audit Achievement ..........................................................................................................57

EHS Communication............................................................................................................59

Awareness ..........................................................................................................................60

myEHS ..................................................................................................................................61

Energy and Climate Impact ................................................................................................62

Energy and Climate Change ............................................................................................64

Energy Consumption........................................................................................................66

Transport..........................................................................................................................71

Water....................................................................................................................................73

Water Use ........................................................................................................................73

Wastewater......................................................................................................................76

Waste ..................................................................................................................................81

Hazardous Waste ............................................................................................................83

Non-hazardous Waste ......................................................................................................86

Recycling..........................................................................................................................89

Non-routine Waste ..........................................................................................................92

Ozone Depletion ................................................................................................................93

Ozone Depleting Substances in Manufacturing ................................................................94

Ozone Depleting Substances in Ancillary Equipment ........................................................97

Volatile Organic Compounds ..........................................................................................100

Product Stewardship ........................................................................................................104

Product Design ..............................................................................................................104

Pharmaceuticals in the Environment ..............................................................................108

Metered Dose Inhalers....................................................................................................111

Ozone Depletion ............................................................................................................113

Biodiversity ....................................................................................................................115

Genetically Modified Organisms ....................................................................................117

Contaminated Land........................................................................................................118

Animal Use Reduction in Occupational Toxicology ..........................................................119

Suppliers ............................................................................................................................122

Contents

ii

Compliance ........................................................................................................................124

Progress Towards Targets ................................................................................................124

Health and Safety ............................................................................................................126

How We Manage Health and Safety ..............................................................................127

Letter From the Vice President, EHM ..............................................................................129

Injury and Illness Rates ....................................................................................................131

Causes of Injury and Illness..............................................................................................137

Serious Incidents and Fatalities ......................................................................................140

Health Programmes ..........................................................................................................141

Safety Programmes ..........................................................................................................146

Suppliers ............................................................................................................................148

Verification Statement......................................................................................................149

GRI Index............................................................................................................................152

Contents

iii

In 2004, for the 5th year, we report ourenvironment, health and safety (EHS)performance to the public on the GSKwebsite. The legacy companies (GlaxoWellcome and SmithKline Beecham)individually published EHS reports for anumber of years prior to the formation of GSK in 2000. Copies of these reportsare available on the Corporate Registerwebsite.

In previous years, we published aseparate EHS report alongside ourCorporate Responsibility Report, but thisyear we have fully integrated the two.This document contains the Caring forthe Environment section of the CorporateResponsibility report with all of itsbackground material covering environ-mental issues and performance. It alsocontains the Health and Safety informa-tion from the Employment Practicessection of the Corporate Responsibilityreport covering health and safety issuesand performance.

CORPORATE RESPONS IB I L I TY

Environment Health and Safety Report 2004

1

CORPORATE RESPONS IB I L I TY: REPORT 2004

Caring for the Environment

2

CORPORATE RESPONSIBILITY PRINCIPLE

We will operate in an environmentallyresponsible manner through systematicmanagement of our environmentalimpacts, measurement of ourperformance and setting challengingperformance targets. We will improvethe efficiency of all our activities tominimise material and energy use andwaste generated. We aim to findopportunities to use renewablematerials and to recycle our waste.

Caring for the environment is a keyelement of our approach to CorporateResponsibility at GSK. Our Environment,Health and Safety (EHS) Plan for Excellencesets out a strategy to improve ourperformance over the ten-year period to2010, from a 2001 baseline. This includesinterim targets to be reached by the endof 2005.

We are on track to meet seven of our tentargets. These cover some of our mostimportant environmental issues, includingenergy and water consumption, ozonedepleting potential, global warmingpotential, wastewater quality, volatileorganic compound emissions and non-hazardous waste. We may not achievethe three targets on hazardous waste,recycling and ozone depletion potentialof ancillary equipment by the end of2005. A fuller explanation of ourperformance is provided on the relevantpages of this report. Next year we will set new targets for 2010.

About the Environment Sectionof This ReportThis is the 5th year that we have reportedon our environmental performance. Thelegacy companies (Glaxo Wellcome andSmithKline Beecham) individuallypublished EHS reports for a number ofyears prior to the formation of GSK in2000. Copies of these reports are avail-able on the Corporate Register website.

In previous years, we have published aseparate EHS report alongside ourCorporate Responsibility Report, but thisyear we have fully integrated the two.

Further background information on ourapproach to managing environmentalissues is available in the Environment,Health and Safety section of our website.There are also more details about ourcorporate responsibility reporting in thesection About This Report on our website.

Scope of DataThe environmental data covers the calen-dar year 2004. It is collected from 83 ofour 84 pharmaceutical and consumermanufacturing sites, 4 of our 8 biologi-cals manufacturing sites and 20 of 24R&D sites as well as 5 of 6 distributioncentres, 4 of the 6 major office locationsand 6 of the smaller office and saleslocations. We include data for sites thatwere in operation for all or part of the year.

We plan to collect energy, water andwaste data from our smaller offices, salesand distribution centres in a phasedapproach over the next few years.However, the overall environmentalimpact from these sites is relatively smalland we therefore do not plan to collectother environmental data.

Notes attached to the charts explain thescope and data collection process foreach parameter in more detail.

VerificationThe environment, health and safetysections of this report are externallyverified by ERM (Environmental ResourcesManagement). Web pages to which theverification applies are indicated by thissymbol. See ERM’s verification statementon page 149.


Caring for the Environment (cont.)

3

The winning team in Evreux’s 2004EHS School Challenge

In 1996, GSK’s manufacturing site inEvreux, France, set up a communitypartnership project for schools. Theproject was an environment, healthand safety (EHS) award scheme thatencouraged children to learn aboutthe EHS issues that are important totheir future.

In its first year, five schools and 100children took part. Thanks in part tothe continued help of local offices ofthe French Education Ministry, theFrench Social and Health InsuranceMinistry Office and a local associa-tion dedicated to science, 14 schoolsand 300 children entered thecompetition in 2003.

Each year has its own EHS theme.For 2003 the theme was WasteRecycling. The first prize - 200 eurostowards a school project and a tripto the Science and Industry Hall inParis - went to a team that created

a papier mache educational bookletabout waste and recycling. Other prize-winning entries included a game aboutrecycling and a play about waste. Aneducational film on recycling wasshown at the awards ceremony. Thetheme for 2004 was health andhygiene.

The awards scheme has helped to buildand enhance GSK’s reputation in thelocal community. The project won firstplace in the community partnershipcategory of our internal awards scheme- the Chief Executive Officer’s EHSExcellence Awards.

Raising Children’s Awareness of Environment, Health and Safety

This year, for the first time, GSK’sEnvironment, Health and Safety (EHS)report is fully integrated into the compa-ny’s Corporate Responsibility Report onGSK.com.

We cover the same issues in the samedetail as before, but have made it simplerto understand our overall approach tocorporate responsibility and to see theconnections between the many subjectareas covered.

Consultation with stakeholders hashelped us identify the prime sustainabilitychallenges we face. These are: climatechange, the impact of pharmaceuticals inthe environment, and more sustainablematerials consumption. We have begunwork developing strategies to tacklethese issues and will publish our plans in 2006.

We have developed a rigorous approachto EHS and sustainability, with a long-term ‘Plan for Excellence’ and five-yearimprovement targets applying through-out our operations. The first five-yearphase of the programme will be completein 2005 so we will set new five-yeartargets during this year to help drive thebusiness towards sustainability. From theend of 2005 we will expand traditionalEHS programmes to include a focus onsustainability.

We have continued to make progress -for example, in 2004, four additionalsites were certified to the EHS manage-ment system standards ISO 14001 and OHSAS 18001.

We are on track to meet seven of our tenquantified environmental targets by theend of 2005. The targets cover some of

our most important issues, includingenergy and water consumption, ozonedepleting potential, global warmingpotential, volatile organic compoundemissions, wastewater quality and waste.

We may not achieve the three targets onhazardous waste, recycling and ozonedepletion potential of ancillary equipmentby the end of 2005. A fuller explanationof our performance is provided on therelevant pages of this report.

Our long-term plan for excellence chartsa journey which begins with improvingour systems, progresses to leadership inEHS performance, and ultimately bringsus closer towards sustainability. The 10-year programme envisages continuousimprovement as well as identifyingspecific actions. As good EHS manage-ment and performance are achieved, we will set ourselves more challengingsustainability objectives on materialsefficiency, energy efficiency and use ofrenewable resources. We also need tolook more closely at the inter-relationsbetween the social, economic andenvironmental impacts of our business.

I hope that this report meets your needsas a stakeholder and I welcome yourcomments or suggestions.

James Hagan Ph.D., P.E.Vice President, Corporate Environment,Health and Safety


Letter From the Vice President, EHS

4

James Hagan Ph.D., P.E.Vice President, CorporateEnvironment, Health and Safety

Environment, health and safety (EHS)issues are managed through an integrat-ed system that aims to ensure issues andrisks are identified, standards are estab-lished, training is provided, targets setand audits conducted.

We have a clearly defined EHS manage-ment structure. Overall responsibility forEHS issues rests with the CorporateExecutive Team and the Board. The Boardchampion for EHS is JP Garnier, the Chief Executive Officer. We also have aCorporate Responsibility Committee andCorporate EHS department. See more onour EHS Management Organisation onpage 11.

Our EHS Policy, EHS Vision and 64 GlobalEHS Standards set the overall frameworkfor managing EHS issues. Our EHS Planfor Excellence sets out our strategy forimproving our environmental perform-ance up to 2010. See more on our EHSManagement System on page 18.

In 2004, four sites achieved dual certifica-tion to the international environmentalmanagement standard ISO 14001 andthe international health and safetystandard OHSAS 18001 for the first time.One site did not renew its certification in2004 and one site certified only the utili-ties area. This means that 14 out of 84pharmaceutical and consumer manufac-turing sites are now certified to both ISO14001 and OHSAS 18001, and sevensites are certified to ISO 14001 only. Weare working to increase site certificationand expect to have around a third of oursites certified by the end of 2005, whichwould put us in a position to movetowards global certification.


EHS Management

5


EHS Management (cont.)

6

Studying alternative processes toreduce waste

In Verona, Italy, we have developeda process which reduces the environ-mental impact of producing achemical which is being tested tohelp treat chemotherapy-inducednausea and vomiting.

Originally, the method for synthesis-ing the chemical required very lowtemperatures and produced signifi-cant quantities of waste by-products.It also required the use of triphos-gene - a toxic reagent which mustbe specially transported, managedand handled. The original processwas designed for producing smallquantities of the chemical. It wasscaled up several times to producelarger quantities for clinical trials,but the process remainedunchanged.

In 2003, researchers set out to createa more efficient process suitable forcommercial production if the clinicaltrials were successful. The innovative

new process eliminated the need forextremely low temperatures, savingenergy.

A number of hazardous substanceswere removed from the process, includ-ing triphosgene, chlorinated solventsand silica treatments. This helped toreduce waste by 75% and the cost ofraw materials by over 50%.

This innovative development won firstplace in the green chemistry/technologycategory of our internal awards scheme - the Chief Executive Officer’sEnvironment, Health and SafetyExcellence Awards.

Eliminating Waste from our Chemical Production Processes

The GlaxoSmithKline EHS Framework is the EHS management system forGlaxoSmithKline. It includes policies,standards, guidance materials, tools andactivities that support and assist thenetwork of EHS professionals whomanage environment, health and safetyat their sites and throughout key businessoperations.


Management Framework

7

FRAMEWORK FOR SUSTAINABILITY IN EHSFRAMEWORK FOR SUSTAINABILITY IN EHSPLANPLAN IMPLEMENTIMPLEMENT CHECKCHECK ACTACT

EHS ACTIVITIES AND RESPONSIBILITIES INTEGRAL TO BUSINESSEHS ACTIVITIES AND RESPONSIBILITIES INTEGRAL TO BUSINESS

GlaxoSmithKline’s Environment, Healthand Safety (EHS) and Employee HealthManagement (EHM) Visions align withGSK’s strategic intent: to become theindisputable leader in our industry byhelping people do more, feel better and live longer.

The EHS Vision embraces the concept of sustainable development focused onenvironmental sustainability. It recognisesthat sustainable business advantage startswhen we understand and address EHSissues. From the development of productsto their delivery, GSK has embarked on ajourney to identify and understand itsrelationship to society and the environ-ment. That is why in our EHS vision westrive for excellence in EHS.


Vision

8


Environment Health and Safety Vision

Our EHS Vision

Our vision is to achieve sustainablecompetitive business advantagethrough leadership and excellence in environment, health and safety.


Employee Health Management Vision

Our EHM Vision

GSK is a recognised leader in protect-ing and enhancing the health of its employees globally, enablingsustainable business success.

The GSK Environment, Health and Safetypolicy was one of the first policies theCorporate Executive Team approved forthe new company. The policy outlines thebroad principles that GSK expects alloperations to live by to achieve the EHS

vision. The EHS policy and EH policycover complementary aspects of theprinciples underlying responsible treat-ment of the environment and of ouremployees.


Policy

9

PurposeTo achieve the GlaxoSmithKlineEnvironment, Health and Safety vision.

ScopeThis policy applies to all GSK employeesworldwide.

PolicyReflecting its commitment to globalleadership and excellence in Environment,Health and Safety, GSK requires all operations to:• protect the health and safety of our

fellow employees, contractors, visitorsand others affected by our operations;

• operate our business in an environ-mentally and socially responsiblemanner;

• commit to continuous improvement ofEnvironment, Health and Safetyperformance;

• comply with legal requirements andglobal GSK Environment, Health andSafety Standards;

• make Environment, Health, Safety and Loss Prevention integral to all GSK business processes, planning and decision making;

• establish business practices andEnvironment, Health, Safety and LossPrevention strategies that optimally

utilise resources and prevent pollutionto ensure the long-term sustainabilityof GSK and the global environment;

• adopt a comprehensive approach toproduct stewardship, which includeskey suppliers and contract manufacturers;

• interact and cooperate actively withkey stakeholders in resolving issuesand improving performance.

GSK will use effective systems metricsand goals in the management of all ofour Environment, Health and Safety activities.

ResponsibilitiesThe Corporate Executive Team is respon-sible for ensuring the health and safetyof GSK’s employees and the protection of the environment and the communitiesin which GSK operates. The primaryresponsibility for implementation of thispolicy rests with local executives for eachbusiness unit. Employees are encouragedto participate actively in, and acceptindividual responsibility for environment,health and safety matters and work inpartnership with management to assurecompliance and support continuousimprovement.


Environment, Health and Safety Policy

PurposeTo establish a policy to protect andenhance the health of GlaxoSmithKlineemployees, thereby making a positiveimpact on productivity and reflecting thevalue we place on all our employees.

ScopeThis policy applies to all GSK employeesand facilities worldwide.

PolicyGSK is committed to global leadership in protecting and promoting the health,well-being and resilience of its employ-ees. Integrating health principles andpractices into Human Resources strategyand business processes will contribute toGSK’s sustainable business success.

The company will:• protect the health of its employees

and others affected by its operations,aiming to eliminate all work-relatedinjuries and illnesses;

• assess health-related risks to employee individual and organisational productivity and proactively manage those risks;

• ensure GSK’s competitive advantageby optimising the mental and physicalwell-being of its employees;

• make health considerations integral to its Human Resource strategy andbusiness processes;

• develop a culture where employeesfeel valued and are not discriminatedagainst because of disability;

• promote awareness of health issuesand their impact on all employees;

• comply with legal and ethical require-ments and GSK Health standards.

GSK will use effective systems, metricsand goals to drive continual improvementin the health of GSK employees.

ResponsibilitiesThe Corporate Executive Team isresponsible for fostering and supportinga culture of health, productivity andresilience and ensuring the health, safety and well-being of employees at work. Managers are responsible forimplementing the principles and practicesembedded in this policy. Employees areresponsible for workplace health withinthe scope of their jobs and are encour-aged to take responsibility for their own health and well-being.

Employee Health Management and Corporate Environment, Health and Safety will work in partnership to support managers in the implementation of this policy.


Employee Health Policy

10

We have a clearly defined EHS manage-ment structure. Overall responsibility forEHS issues rests with the CorporateExecutive Team and the Board ofDirectors. The Board champion for EHS is JP Garnier, the Chief Executive Officer.

There are organisational groups thatfocus on governance issues and a

Corporate Environment, Health andSafety department that provides overall direction for company-wide EHS programmes and issues. There are many other organisations within GSKthat work with the EHS department to manage and improve EHS at GSK.


EHS Management Organisation

11

GlaxoSmithKline has several groups thatidentify governance and ethical issues,recommend ways to manage them andperiodically review the management ofthe issues. Environment, Health andSafety (EHS) issues are among thosereviewed and addressed by these groups.

The Risk Oversight and ComplianceCouncil (ROCC) is responsible for co-ordinating the internal control and riskmanagement activities of the company.EHS is identified as one of the areas ofthe business that has the potential forserious adverse consequences if notmanaged properly.

The Corporate Executive Team (CET)actively manages EHS issues. JP Garnierhas identified himself as the champion ofenvironment, health and safety for boththe CET and the Board. He ensures thatEHS issues are regularly debated to verifythat we are pursuing responsibleprogrammes for all operations. The VicePresident, Corporate Environment, Healthand Safety reports at least annually tothe CET on EHS issues

The Board of Directors has twocommittees that evaluate the manage-ment and effectiveness of our EHSprogramme. These mechanisms forreview and oversight provide opportunities

for environment, health and safety issuesto be considered at the highest level ofthe organisation.

The Audit Committee of the Boardreviews EHS performance to confirm that issues are properly managed andcontrolled. The Vice President, CorporateEnvironment, Health and Safety makesannual presentations to the AuditCommittee so that they can reviewmeasures of environment, health andsafety performance and track ourprogress toward meeting EHS targets.They also review the results of EHS audits of GlaxoSmithKline operations,contract manufacturers and key suppliers.The level of scrutiny of the AuditCommittee is in line with requirements of Sarbanes-Oxley.

The Corporate ResponsibilityCommittee advises the Board on social,ethical and environmental issues thathave the potential to seriously impactGlaxoSmithKline’s business and reputa-tion. The Vice President, CorporateEnvironment, Health and Safety providesreports to this committee on aspects ofEHS, such as sustainability, that havesocial implications above strict regulatory compliance.

Governance Organisation

The Corporate Environment, Healthand Safety department reports directlyto GlaxoSmithKline’s General Counsel,Rupert Bondy, and has a dotted linereporting relationship to the President ofGlobal Manufacturing and Supply, theGSK manufacturing organisation. Thisplaces the Vice President, CorporateEnvironment, Health and Safety on boththe Legal Management Team and theGlobal Manufacturing and SupplyExecutive Team illustrating the emphasisplaced on EHS in GlaxoSmithKline.

CEHS Vision

To be the undisputed leader in EHS in the pharmaceutical industry,contributing to sustainable, competitive business advantage for GlaxoSmithKline.

CEHS Mission

In order to achieve its vision, CEHSwill provide:

• leadership for the integrated,global effort withinGlaxoSmithKline on key EHS issues

• governance of EHS performance

• support for GlaxoSmithKlinebusinesses with tools, technology,information and knowledge

• innovation and continuousimprovement for unified EHSsystems and approaches

The Strategic Planning, Programmesand External Relations team co-ordinates the EHS Plan for Excellence, the strategic approach to environment,health and safety that will enableGlaxoSmithKline to achieve its EHSaspirations. This includes overseeingstakeholder engagement and workingwith external partner organisations onEHS. The team also identifies emergingissues and works with government andregulatory bodies to influence the devel-opment of regulations.

The EHS Product Stewardship teampromotes the ethical management ofenvironment, health and safety through-out the life-cycles of GlaxoSmithKlineproducts. This group develops, imple-ments and supports key programmes in occupational hygiene, process safety and environmental controls to ensureadequate protection of people, property


Corporate Environment, Health and Safety Organisation

12

and the environment. It also championssustainable EHS practices and works withresearch and development and the NewProduct Supply organisation to identifypotential EHS life-cycle issues early in thedevelopment process. Once the teamassesses EHS issues, it recommendsmeasures to mitigate, control andmanage EHS risks. The team providestechnical information and guidance andrecommends strategies to research anddevelopment for developing manufactur-ing processes that use resources efficient-ly and that minimise emissions. And ithelps by developing and promotinginnovative tools, systems and methodologies.

The Hazard Assessment andCommunication team develops andcommunicates environment, health andsafety information for GlaxoSmithKlinematerials and products. The informationserves as the foundation to protect theenvironment and the health and safety of everyone involved in developing,manufacturing, distributing, dispensingor disposing of our products. In 2004,this team had a major focus on materialsin research and development, in thePharmaceuticals, Biologicals andConsumer Healthcare businesses, toensure availability of adequate informa-tion as these materials are developed andtransferred throughout the manufactur-ing network. There was also a focus onready availability of accurate informationon other chemicals used in research,development and manufacture of GSKproducts in order to implement safe andeffective controls for protecting employ-ees and the environment.

The EHS Commercial Support teamextends the traditional work of CEHSbeyond research and development andmanufacturing into GlaxoSmithKline’sCommercial businesses. The mission ofthe team is to add value to Commercialoperations by improving their effective-ness through reducing EHS risks. Theteam is committed to building andstrengthening relationships and under-standing the business and EHS needs ofthe Commercial groups. The team’s aimis to become a strategic business partnerthrough providing appropriate andrelevant programmes and services andthereby assist this business sector inimproving EHS performance. A goodexample of this partnership is the trainingprovided to the US Pharmaceuticalsbusiness on new requirements regardingcompany provision of information tohealth professionals on the safe handling,storage and use of cytotoxic medicines.

The EHS Global Audit team delivers aninternal audit programme, in collabora-tion with Employee Health Management,for all manufacturing, research and devel-opment and key office and warehouselocations. It also performs risk-basedassessments of key contract manufactur-ers and suppliers and EHS due diligenceassessments for acquisitions and divesti-tures. In all cases the aim is to ensurethat EHS risks and impacts are managedeffectively and to identify opportunitiesto reduce risks and contribute to continu-ous improvement.

The EHS Reporting team collects andanalyses data from all operations forreporting to internal and external stake-holders. It evaluates data contributed byall operations and uses the information


Corporate Environment, Health and Safety Organisation (cont.)

13

to assess the effectiveness of EHSprogrammes and drive continuousimprovement. The team also supportsEHS information management softwarethat can be used to manage EHSprogrammes and measure improvementand progress to targets. In addition, itmanages EHS reward, recognition andawareness programmes that are the parts of the overall GlaxoSmithKline EHS Framework devoted to motivatingemployees, raising awareness and drivingcontinuous improvement.

New in 2004, is the assignment of a person to focus specifically onSustainable Development. She willprovide the business with information oncurrent and emerging environmentalissues so GSK can take these into consid-eration in new product development withthe aim of preventing approval delaysthat could be caused by environmentalconcerns. She will also concentrate onthe issue of pharmaceuticals in theenvironment and make information available to the public through publica-tion of scientific papers.

The Research and Development EHSGroup reports with a dotted line to theCorporate Environment, Health and Safetygroup. This group facilitates integrationof EHS into the agenda of the researchand development sector of the businessand supports a unified and consistentapproach to EHS across the company.


Corporate Environment, Health and Safety Organisation (cont.)

14

Employee Health Management (EHM)reports to the Senior Vice President,Human Resources who is a member ofthe Corporate Executive Team. There is a close working relationship withCorporate Environment, Health andSafety (CEHS) and the two groups areconnected organisationally; the EHMGlobal Operations group within EHMreports on a dotted line to the VicePresident of CEHS. The two groupscollaborate extensively in many areasincluding audits; management of healthrisks such as ergonomics and chemicalagent exposures; product stewardship;injury and illness reporting; and EHS andemployee health competency building.

Employee Health Management is struc-tured as a shared service within the USand UK and as an above site, globalfunction.

There are three key teams:

The EHM Global Operations teamdevelops employee health-relatedpolicies, standards, guidance and toolsand reviews their implementationthrough audits conducted in collabora-tion with CEHS. The team supportsGlaxoSmithKline sites around the worldto achieve company standards, protectthe health of employees and optimisehealth-related productivity. It recruits,coaches and trains a global network ofemployee health professionals; it devel-ops and implements best practiceprogrammes and initiatives. In partner-ship with CEHS, the team collects,validates, analyses and reports employeehealth data from all operations to facili-tate evidence-based decision-making.Additional global support is provided on an as needed basis.

The two EHM Shared Service teams(one in the US and one in the UK) workwith management, with corporate andsite environment, health and safetyprofessionals and with human resourcesprofessionals to manage health risksassociated with business activities in theUS and UK. They maximise employeeproductivity by protecting and restoringhealth and by minimising health-relatedabsence from work. They work inpartnership with the Benefits departmentto offer programmes and benefits toenhance health and with theOrganisational Development departmentto support organisational productivity bypromoting resilience and advisingmanagers when health has impacts onemployee performance.


Employee Health Management Organisation

15

GlaxoSmithKline has establishedfunctional and reporting relationships for Corporate Environment, Health andSafety (CEHS) and Employee HealthManagement (EHM) to encourage theintegration of EHS throughout itsbusiness.

R&D Chemical DevelopmentBy using more focused and data-drivendevelopment, GlaxoSmithKline can significantly improve efficiency of newprocesses. This will make the transfer of processes to manufacturing morestreamlined and give GlaxoSmithKline acompetitive advantage. CEHS supportsthe Strategic Technologies group withinChemical Development by providingsupporting documentation and tools.

New Product SupplyTo promote the use of safer and moreenvironmentally benign processes, theCEHS Product Stewardship team identi-fies occupational hazards and risks andenvironmental aspects of specific chemi-cals and processes so that research anddevelopment scientists and engineers canuse this information when selectingmaterials and processes for producingactive pharmaceutical ingredients.

Engineering, Technology andCapital Management (ETCM)ETCM ensures that our ethical and legal requirements are incorporated into new production systems and thatcapital projects are efficiently designedwith EHS considerations built in. Thealliance between ETCM and CEHS facilitates development of effective andefficient processes that reduce resourceconsumption, minimise waste andprotect employees.

QualityThe Quality organisation is a naturalpartner for CEHS because improvedquality reduces the amount of rejectedproduct, which means less waste, andtherefore, reduced environmental impact.By sharing information from their auditsof manufacturing operations, the EHSand Quality groups enhance the opportunities to improve the quality of our products and reduce the environmental impact.

Operational ExcellenceThe lean sigma (a combination of leanmanufacturing and six sigma) approachto operational excellence that eliminatesunnecessary steps and reduces variabilityis at the heart of the GlaxoSmithKlineculture. Aligning EHS with OperationalExcellence principles helpsGlaxoSmithKline reduce waste and protect employees.


Partner Organisations

16

Topics in This Section

• R&D ChemicalDevelopment

• New ProductSupply

• Engineering,Technology andCapitalManagement(ETCM)

• Quality

• OperationalExcellence

• GlobalManufacturingand Supply

• HumanResources

• Sales andMarketing

• CorporateCommunications

Global Manufacturing and SupplyEHS is integral to all manufacturingoperations. To ensure that EHS issues areintegrated into manufacturing decisions,the Vice President of CEHS has a dottedline reporting relationship to thePresident of Global Manufacturing &Supply.

Human ResourcesTo support GlaxoSmithKline employeesand ensure EHS is integrated intoemployee management, CEHS has aclose working relationship with EHM,part of the Corporate Human Resourcesorganisation.

Sales and MarketingTo integrate EHS into sales and marketingactivities, the CEHS Commercial Supportteam works to expand EHS programmes,such as driver safety and office safety,into this area of the business.

Corporate CommunicationsCEHS integrates EHS messages withcorporate messages to build environ-ment, health and safety into theGlaxoSmithKline culture and contributesto policy statements on environment,health and safety issues. The CorporateResponsibility report now integrates EHS information.


Partner Organisations (cont.)

17

EHS management at GSK is based on acomprehensive structure of documents,processes and programmes that isaligned with recognised managementsystem standards, such as ISO 14001and OHSAS 18001.

Systematic audits assess sites’ adoptionof a management systems approach.


EHS Management System

18

Leadership and Management

Leadership and Excellence Management System Elements Product Stewardship Sustainable Development

General EHS Programmes

Employee Health and

EHS Services

EHS RiskAssessment

andManagement

Employee and ExternalStakeholderInvolvement

andCommunication

EmergencyPlanning and

Response

EmployeeInformationand Training

OperationalControl

PerformanceMonitoring and

Reporting

Investigationand Reporting

of EHS Adverse Events

Audit

Business Processes

New ProductDevelopment and Supply

Facility,Engineeringand Process

ChangeProcurement Contract

Manufacturers Key SuppliersLoss

Prevention of Business-

critical Assets

BusinessContinuityPlanning

Business,Product and

PropertyTransactions

Employee Health Hazardous ActivitiesEnvironmental Risks

Food Services and Drinking Water

Ergonomics and theWorkplace Environment

Health Surveillance

Health and SafetyEnhancement

Resilience and Mental Well-being

Reproductive Health

Absence andRehabilitation

Workplace Smoking

Drugs and Alcohol in the Workplace

Waste Minimisation and Recycling

Energy Efficiency

Packaging of Productsand Environmental

Claims

Product Returns

Waste Management

Water Management

Management of Emissions to Air

Ozone-depletingSubstances

Biodiversity

Soil and GroundwaterQuality

Process Risk Management

Transportation of Materials and Products

Occupational Travel

Use of Work Equipment

Use of Personal Protective Equipment

Permit-to-work Systems

Working at Height and Fall Protection

Storage of Materials

Contractors and Visitors

Workplace Transport

Off-site Working

Construction andDemolition

Hazardous Agents

Material HazardIdentification andCommunication

Occupational and Environmental

Exposure Limits

Chemical Agents

Sensitising Agents

Biological Agents

Fire

Flammable Liquids and Gases and

Combustible Dusts

Electricity

Noise

Ionising Radiation

Non-ionising Radiation

Asbestos and Polychlorinated Biphenyls

Global EHS Standards Supporting GlaxoSmithKline’sEnvironment, Health and Safety andEmployee Health policies is a comprehen-sive set of 64 Global EHS Standards thatestablish specific requirements for thecompany worldwide. The Standardsestablish a management system approachto legal compliance, continuous improve-ment and the management of key EHS-related business risks. They are consistentwith internationally recognised manage-ment system standards, such as ISO14001 and OHSAS 18001. The Standardswere developed in consultation withinternal stakeholders, and approved by JP Garnier, in 2001 and came into effecton 1st January 2002.

EHS GuidelinesEHS Guidelines are key components ofGlaxoSmithKline’s EHS Framework. Theysupport the Global EHS Standards byproviding further information on therequirements of the Standards and bysetting out an approach for achievingcompliance that has been approved byEHS and Employee Health functions. Theyincorporate existing good practice, fromboth within and outside GlaxoSmithKline.Guidelines for all Standards werecompleted during 2003.

Supporting TechnicalInformation A wide range of information is availableon the intranet to supplement the EHSGuidelines. This includes technical infor-mation, training materials and EHSguides to business processes.


Structure

19

Capital and Procurement The Capital Project Technical Reviewprocess was successfully launched in2003. The process ensures thatGlaxoSmithKline considers environment,health, safety, security and loss preven-tion in the design of new facilities andprocesses. By identifying environment,health and safety (EHS) issues early in aproject, we can engineer facilities andprocesses that are efficient and safe forworkers and the environment while stillbeing cost effective.

The Procurement department uses theSourcing Group Management (SGM)Process to manage their activities. Thisprocess provides a series of tools to helpprocurement professionals ensure thatour business requirements are under-stood by vendors, so they can be met orexceeded whilst ensuring GSK obtainsbest value and continuity of supply forgoods and services.

A tool called a SGM Action Pack waslaunched in 2004 to help Procurementidentify EHS business requirements. TheAction Pack is designed to be used bynon-EHS specialists to help them identifythe EHS risks associated with procure-ment activities, to determine significanceand to decide if they can help eliminate,minimise or better manage the EHSrisk(s). The outcome of this process deter-mines whether they should take actionthemselves or seek the support of EHSspecialists. This is particularly critical inareas such as containment, noise control,ergonomics, machine guarding andenergy management.

New Product Development and SupplyA business process called the EHSMilestone Aligned Process (EHS MAP)was created in 2002 to help scientistsidentify and pro-actively address EHSissues during routine new product devel-opment and supply activities. It wasextensively reviewed and revised in 2003by corporate, research and developmentand manufacturing EHS professionals,and the key business stakeholders whoare primarily responsible for carrying out EHS MAP activities. EHS MAP wasapproved and implementation was begun in 2004.

EHS MAP is helping to ensure that:• there is a better understanding and

appreciation of EHS activities thatshould be conducted throughout aproduct’s life-cycle;

• new products and processes are developed that do not harm people,property or the environment;

• best practice is implemented through-out the GlaxoSmithKline network;

• staff are engaged and committed tomaking EHS integral to new productdevelopment and supply.

As GlaxoSmithKline translates its highpotential research and developmentpipeline into new products, we believeEHS MAP will help identify opportunities,such as improvements in process efficien-cies and elimination of waste, that willultimately facilitate and speed up thenew product development and supplyprocess.


Business Processes

20


• Capital andProcurement

• New ProductDevelopmentand Supply

• Suppliers

• EmergencyResponse andCrisisManagement

• Acquisitions andDivestitures

SuppliersOur supply chain is complex. It includescontract manufacturers that manufacturedrugs for us and key suppliers that supplybulk chemicals. GlaxoSmithKline usescontract manufacturers in a number ofcountries to supply certain products forlocal markets, some intermediates andactive pharmaceutical ingredients and, in a few cases, for specialist processes or technology. Initial agreements for new contract manufacturers include EHSrequirements based on the applicablestandards. As existing contract manufac-turers renew their agreements,GlaxoSmithKline’s EHS requirements are included.

To ensure that contract manufacturersare managing EHS risks and impactsresponsibly, the internal EHS audit teamconducts audits to assess conformancewith GlaxoSmithKline requirements andwith legislation. They also conductassessments of identified key suppliers.Areas for improvement are highlighted tothe contract manufacturer or key supplierand progress is monitored.

In audits and assessments of existingcontract manufacturers, EHS perform-ance was found to be above 30% and ashigh as 92%. A few audits of prospectivecontract manufacturers turned up scoresunder 30%, which are consideredunacceptable, and therefore we will notsource from these unless substantiveimprovements are made.

The overall EHS Third Party ManagementProcess was further developed in 2004 toreflect changes in the business manage-ment of third parties. The process coversall EHS aspects related to selection

through to the ongoing management ofcontract manufacturers and key suppliers.We also collect and report EHS data fromselected suppliers. We aim to increasethe number of suppliers that provide EHS data but this is proving difficult and will take several years.

Emergency Response and CrisisManagementThe discovery, development andmanufacture of pharmaceutical andconsumer products involve the use ofhazardous materials and processes.GlaxoSmithKline manages the risksassociated with these materials andprocesses using sound engineering principles and robust EHS programmes.All sites also incorporate emergencyresponse and crisis managementprogrammes into their managementplans. These programmes ensure thataccidents would be effectively managedand that any impact on the site, commu-nity, environment, or business would beminimised. Each site does an annualreview of its internal emergency responseprogrammes as well as the technicalcapabilities of the community emergencyresponse organisations and developsaction plans to address any areas needing improvement.


Business Processes (cont.)

21

Acquisitions and DivestituresAs part of business due diligence,GlaxoSmithKline employs an EHS duediligence business process to ensure thatEHS aspects are fully assessed andintegrated into decision making and theresulting provisions of contracts for trans-actions. A number of assessments foracquisitions as well as divestitures wereconducted during 2004. Acquisitions anddivestitures were all within core businessareas and would not be expected tomaterially change GSK’s EHS footprint.


Business Processes (cont.)

22

Hazard Assessment andCommunicationGlaxoSmithKline assesses environment,health and safety (EHS) hazards associat-ed with the research, development andmanufacture of our products in order tomeet ethical, producer responsibility andregulatory requirements and to ensurethe workplace is safe and the environ-ment is unharmed. In 2004, we focusedon new pharmaceuticals in research anddevelopment and continued to refine anduse an innovative, tiered approach toassess environment, health and safetyhazards for GlaxoSmithKline materials.This approach has been integrated intothe research and development process inorder to identify EHS hazards for chemi-cals at early stages of product develop-ment according to the potential risk ofenvironmental or worker exposure. Wealso systematically assess flammabilityand possible adverse health or environ-mental effects.

Flammability, Dust Explosivity andElectrostatics BehaviourOur in-house hazard determinationlaboratory (HDL) conducts tests forflammability and dust explosivity proper-ties of materials handled within researchand development and manufacturingfacilities. Following the significant effortsduring 2003 to identify core flammabilityand dust explosivity gaps in materialsused in existing processes, a largenumber of materials were tested in 2004.Together with increasing support for R&Ddevelopment projects and manufacturingprocesses the number of tests conductedduring 2004 was equal to that achievedduring 2003 in spite of a reduction inresource available.

Implementation of the EU regulationsapplicable to explosive atmospheres(Directive 99/92/EC, ATEX 137) took on increasing importance withinGlaxoSmithKline as sites became moreaware of their responsibilities to under-take appropriate risk assessments focusedon explosive atmospheres. This require-ment placed more demand upon the HDLto provide focused testing support, whichwas extensively utilised by a number offacilities demonstrating large cost savingsto the business.

Work during 2005 will focus on ensuringthat GlaxoSmithKline facilities operatingwithin the EU all have ready access toappropriate fire and explosion data aheadof full implementation of Directive99/92/EC (ATEX 137) in 2006 for existingGlaxoSmithKline processes.

Environmental TestingIn addition to characterising the safetyhazards of materials used and producedthroughout the corporation,GlaxoSmithKline’s hazard assessmentstrategy includes characterising environ-mental hazards of these materials. Thetesting programmes that supportenvironmental hazard assessment mustmeet ethical and regulatory requirementsand are used to assess and minimizepotential environmental impacts ofGlaxoSmithKline products and processes.Material testing involves a tieredapproach that utilizes a core set of testsinitially, and then progresses based onthe results. The tests are designed toassess fate, which identifies potential


Programmes

23


• HazardAssessment andCommunication

• Flammability, DustExplosivity andElectrostaticsBehaviour

• EnvironmentalTesting

• Occupational andEnvironmentalExposure Limits

• EHS Informationfor FormulatedProducts

• EHS HazardInformation onGlaxoSmithKlineMaterials

• Safe Transport ofMaterials

• EnvironmentalControls

• EHS Programmesin GlaxoSmithKlineCommercial

• Ergonomics

• OccupationalHygiene andControl ofChemicalExposures

• Resilience andMental Well-being

• HumanImmunodeficiencyVirus (HIV)

• Process Safety andSafety Engineering

environmental distribution and degrada-tion processes, and ecotoxicity, whichcharacterizes concentration levels thatmay adversely affect aquatic and terrestrial organisms.

Following assessment of data gaps in2003, we generated more than 500environmental test results on 125 materi-als. The data from these tests were usedto generate environmental hazard assess-ment concentrations that facilitate designand selection of appropriate wastecontrol systems to minimize environmen-tal impacts. The data are also used torefine testing approaches, support thedevelopment of improved environmentalfate and effects models used for earlyassessment and improve the quality ofour environmental risk assessment strategies.

In an effort to better reflect and communicate results of GlaxoSmithKline’senvironmental testing, all availableenvironmental test results for pharmaceu-tically active components of GSK marketedproducts are now being embedded inSafety Data Sheets (SDS). This informa-tion as well as other EHS hazard information is available through the internet on gsk.com.

Occupational and EnvironmentalExposure LimitsGlaxoSmithKline develops occupationaland environmental exposure limits for ourmaterials in order to guide the designand selection of chemical control systemsto protect our employees’ health and theenvironment. During 2004, our expertsestablished new occupational exposurelimits for more than 40 materials andenvironmental limits for more than 300materials. These limits are established

based on data from extensive testing of the materials.

EHS Information for FormulatedProductsGlaxoSmithKline has developed SafetyData Sheets (SDSs) for more than 1,200of its pharmaceutical, biological andconsumer healthcare products that areeither in R&D or are sold in many majorglobal markets. These SDSs are availablethroughout the company. In addition,approximately 300 of these SDSs for US marketed products and 350 for UK marketed products are availableexternally on gsk.com for direct access by external customers.

In order to support new product development, triggers are built into R&Dprocedures to ensure SDSs are createdfor new products as they progressthrough the development process. Theobjective is to make SDSs available toprovide EHS information in support ofclinical and consumer studies and followthrough to product launch.

EHS Hazard Information onGlaxoSmithKline MaterialsGlaxoSmithKline uses a global intranetsystem called MSDS@gsk to provide EHShazard information in a unified format toall operations. This system provides safetydata sheets (SDS) and related informationfor GlaxoSmithKline materials andproducts and for key manufacturing andprocess chemicals. The information forGlaxoSmithKline materials and products,available in English, French, German,Italian, Portuguese and Spanish, is updatedregularly with new information availableto the company worldwide by the dayafter the update.


Programmes (cont.)

24

Tachi YamadaChairman, Research & Development

Minimising the risks fromhazardous materials toprotect our employeesand the environment mustbe an essential part ofdelivering “the Wall” ofnew products.

In 2004, extensive resource was dedicat-ed to materials in research and develop-ment to ensure adequate information isavailable to support new products.Additional tools were developed to bettermanage the overwhelming amount ofEHS information. For example, an emailnotification tool was added, enablingemployees to be kept up-to-date withSDS changes automatically.

Safe Transport of Materials Research and manufacture of pharma-ceuticals involves transporting variouschemical, biological and radioactivematerials and products around the world.To ensure compliance with national andinternational transportation laws andconventions and to safeguard employees,the public and the environment,GlaxoSmithKline employs site-basedtransport safety advisors and specialists inbusiness units that transport materialsand products. Over 250 advisors in 40countries participate in a global networkthat supports continuous improvementby sharing technical and regulatory infor-mation, best practices and lessonslearned.

In May 2004, CEHS launched theHazClass™ System. This is a centralizedmaterial hazard information and classifi-cation system that provides hazard infor-mation, classification support, transporta-tion guidance, tracking and emergencyinformation for hazardous materialsshipments worldwide. It currently hasmore than 600 users at 57 sites, andsupports transportation of more than10,000 shipments of materials permonth. In September 2004, the annualDangerous Goods Advisor Safety Forum

was held in Hamburg, Germany. Thetwo-day forum provided an opportunityfor dangerous goods experts fromthroughout Europe to share bestpractices and lessons learned

Environmental Controls

AirGlaxoSmithKline identifies, characterisesand assesses emissions to the air fromour operations so that we can minimiseor manage them in a way that eliminatesadverse impact to the public or theenvironment. As part of our programmeto reduce air emissions, especially green-house gases, wind turbines were installedat one of our manufacturing sites andare planned for another. In addition toreducing greenhouse gas, these turbineswill have the benefit of generatingrenewable energy for our operations. We have achieved significant reductionsin solvent releases through reformulationof final dosage forms using water-basedtechnologies.

WastewaterGlaxoSmithKline is committed to ensur-ing that discharges to the environmentare kept to levels that avoid adverseimpact and conserve resources. We havedeveloped detailed guidance to supportthe EHS Standard that addresses waste-water management and have a target toreduce chemical oxygen demand, ameasure of water pollution.

Waste GlaxoSmithKline has targets to reducethe impact of waste from our operationon the environment. Technical guidancehad been developed for our EHSstandards on Waste Minimisation and


Programmes (cont.)

25

Recycling and on Waste Management.Sites identify and assess waste arisingfrom site activities and then minimise ormanage waste through the followingmeasures:• eliminate or reduce waste generation

whenever feasible;• substitute with sustainable materials

whenever feasible to minimise overallimpacts on air, water and land;

• reuse waste whenever feasible;• recycle wastes in a manner consistent

with local regulatory requirements;• use treatment and disposal options

that minimise the overall EHS risksand impacts on air, water and land.

Natural Resources GlaxoSmithKline strives to reduce naturalresource consumption by our operationsto minimise impact on the environment.We have adopted global standards onSustainable Development, EnergyEfficiency, Water Management andBiodiversity to ensure the sustainability of our operations. The CorporateEnvironment, Health and Safety depart-ment works with Procurement,Engineering Technology and CapitalManagement and other corporatefunctions as well as the operational sites to identify and implement naturalresource conservation projects.


Programmes (cont.)

26

EHS Programmes inGlaxoSmithKline Commercial Although sales and marketing and office-based activities are perceived as havingfewer EHS hazards and risks thanresearch and development or manufac-turing, lost time injury and illness onpage 131 is a major concern in ourcommercial organisation. The key healthand safety risks that must be managed ina commercial setting are driver safety,emergency planning (especially fire andfirst aid), ergonomics, mental well-beingand resilience and accident investigationand reporting. The environmental issuesmost relevant to Commercial are theproper management of energy and wasteand the design and labelling of productsand packaging. Programmes are beingdeveloped to help the commercialbusinesses implement EHS programmesthat address their particular risks andissues. Through collaboration with theGroup Internal Audit and CorporateEthics and Compliance departments, adetailed picture of how EHS is beingaddressed in Commercial is beingcompiled. The key areas being examinedare:• environment, health and safety

policies;• documented responsibilities for imple-

menting EHS policies and procedures• identification and assessment of EHS

risks and issues;• waste management, recycling and

product returns;• ergonomics (in particular, computer

workstation use);• occupational travel (including driving

on company business);• fire and first aid;

• emergency response planning;• adverse events investigation

and reporting.

Driver Safety Sales representatives can be at riskespecially from road traffic accidents and ergonomic stressors such as manualhandling. Motor vehicle accidents areone of the main causes of lost timeinjuries in the company on page 137.Therefore, reducing the number of motorvehicle accidents in commercial opera-tions is one of our key priorities and theaim of GlaxoSmithKline’s driver safetyprogramme is to reduce fatalities, injuries and illnesses to drivers driving on company business. Our Driver Safetyprogramme focuses on three keyelements: the driver, the vehicle andthe management processes in place to manage the driver and vehicles.

In GlaxoSmithKline the driver is expectedto help reduce the risk of road trafficaccidents by avoiding, where possible,the need to drive by using alternativeoptions such as video or teleconferenc-ing. In addition, the driver and passen-gers must wear seat belts and the drivermust not drive if under the influence ofalcohol, drugs or medication, nor whenfatigued. The driver must not use amobile phone while driving.

GlaxoSmithKline’s vehicles must beselected to avoid back, posture or otherergonomic injury or illness and must bein safe working order.

We expect management processes tobe implemented to ensure that anyonedriving on company business has beenapproved to do so and is medically fit todrive. For instance, pre-employment


Programmes (cont.)

27

David StoutPresident, Pharmaceutical Operations

Environment, Health andsafety hazards may bedifferent in Commercial,but they can affect ourpeople just as much asthose in manufacturing orR&D. Completing CoreEHS Programmes protectsour people and supportsour business aims.

screening includes a review of motorvehicle driving license and penalty pointsor violations (driver history). All accidentsmust be reported, documented, appropri-ately investigated and corrective actionsimplemented. Performance is monitoredand feedback is given to drivers.

A number of businesses acrossGlaxoSmithKline have successfully implemented safe driving programmes.For example, in the Philippines, werequire all sales representatives to attenddefensive driving courses and undertakeboth written safe driving and practicaldriving examinations. These examinationsare in addition to national requirements.Employees may have their vehiclebenefits suspended if they demonstrateunsafe or discourteous driving behavioursor have poor accident records.GlaxoSmithKline in Poland and theUnited States operate driver incentiveschemes whereby employees with goodaccident records receive a range ofawards and drivers with poor accidentrecords are penalised. A number of othercountries; e.g., Australia, Canada, France,Italy, Romania, Spain and the UK haveestablished programmes in place withmany more countries like Hungary andthe Czech Republic having introducednew driver safety programmes in 2004.

Motorbike Rider Safety In a small number of countries likeBangladesh, India, Indonesia andVietnam, pharmaceutical companiesnormally provide their sales employeeswith motorbikes instead of cars.GlaxoSmithKline requires all motorbikeriders to be provided with crash helmetsand additional training in the area ofdefensive riding. GlaxoSmithKline in India

is the pilot for this programme and areusing as a basis of the programme theGlaxoSmithKline Motorbike RiderHandbook which has been translatedinto a number of languages. InBangladesh, Indonesia and Vietnam themotorbike safety programme has beenlaunched with the materials translatedinto local languages. In 2005 and futureyears we will encourage full implementa-tion of the programme for all motorbikeriders and will follow up to determine thelevel of implementation.

Driving and the EnvironmentIt is estimated that GlaxoSmithKline hasover 32,000 vehicles across the globeand each year spends over £165 millionon purchasing, replacing, repairing, insur-ing, maintaining, leasing, renting andfuelling vehicles. Over 5,000 tyres peryear are replaced by employees in the UK who select a car through a leasingarrangement set up by GlaxoSmithKline.This equates to about 50,000 tyres peryear across GlaxoSmithKline as a whole.Our estimated annual fuel bill for vehiclesis about £30 million and we use over 20 million litres of fuel in Europe, whichmeans our European drivers drive over140 million miles or 5,600 times aroundthe world in a year. In addition, conserva-tive estimates are that GlaxoSmithKlinespends about £10 million repairing ourown vehicles and paying for third partyrepairs each year.


Programmes (cont.)

28

Ergonomics Reducing ergonomic illness and injurycontinues to be a key area of focusthrough Operational Excellence initiatives,business objectives, local consultation,site audits and global training.

The Office Ergonomics Self-Assessmentweb-based tool, which is now active inmultiple languages, is well established inCorporate Headquarters locations and isbeing used in several facilities across theglobe. The concept and value ofParticipatory Ergonomic Improvementteams has been demonstrated at pilotsites and has been built into the compa-ny ergonomic risk reduction strategy.Regional focus groups composed of EHMand EHS professionals have worked tocreate and share good ergonomicpractices and solutions.

A musculoskeletal gap analysis tool hasbeen developed and will be used exten-sively in 2005 to facilitate managementof the impact of musculoskeletal injuryand illness on employees and thebusiness, from both occupational andnon-occupational factors. An initiative isunderway to identify employee muscu-loskeletal risk factors from our generalHealth Risk Appraisal (HRA) tool and linkemployees to risk reduction programmesand web-based educational materials. Toensure the Employee Health Managementgroup have the right expertise, a full-timeprofessional ergonomist has been recruit-ed to lead development of the ergonomicstrategy and a significant number ofoccupational health advisers have enrolledin training courses in ergonomics. Theseefforts have and will continue to reducethe impact of ergonomic illness and

injury and will form the focus of ourcontinued programmes.

In alignment with our workplaceergonomics programmes, we are address-ing the management of non-occupationalillness and promoting fitness in ourworkforce. This effort includes wellnessprogrammes, standardised approaches tocase management of employees withergonomic illness or injury, proactiverehabilitation including access to physio-therapy, workplace adaptation andchanging behaviours and beliefs ofemployees and their medical providers.Tools and educational material to assistsites with managing these issues arecontained in the GSK musculoskeletalgap analysis tool and will be promotedand used throughout 2005.

Ergonomic Improvement TeamsIn 2001, EHM first identified the need for and implemented its first ErgonomicImprovement Team (EIT) at BarnardCastle to look at the increasing numbersof lost time illnesses and injuries relatedto musculoskeletal disorders and the riskassociated with ergonomic issues in theworkplace. The work on ergonomics atBarnard Castle was recognised by a ChiefExecutive Officer’s EHS Excellence Awardfirst place in 2004. This has been recog-nised as the a gold standard ergonomicsprogramme for other sites to emulate.

Occupational Hygiene andControl of Chemical Exposures GlaxoSmithKline’s current portfolio ofpharmaceutical and consumer healthcareproducts is extensive and requires sites tocontrol many chemicals used in synthesisand final products to ensure that employ-ees are protected. In addition to existing


Programmes (cont.)

29

products, GSK has a strong pipeline ofnew products some of which bringchallenges due to high potency with lowoccupational exposure levels (OELs) andincreased manufacturing complexity. Tomanage these potential exposure issues,GSK has been focussing on chemicalagent exposure for several years and will continue to do so in 2005.

GSK has a strategy for addressing thechallenge of chemical exposures and formeeting our 2010 aspiration to achieve a ‘shirt sleeve’ workplace. This is aworkplace where containment of chemi-cals during manufacture replaces theneed for personal protective equipment.There are many examples of areas wherewe have already achieved this goal. Theseinclude many contained powder transfersystems and extensive use of glove-boxtechnology in our new pilot plant facilityin Cork, Ireland.

There are several elements to the occupa-tional hygiene strategy, which include:• understanding our current capabilities

to prioritise interventions;• ensuring current controls are

adequate, including the appropriateselection and use of respiratoryprotective equipment (RPE), when needed;

• where RPE is currently required,planning to improve containment toreduce the reliance on RPE;

• designing containment of chemicalsinto new facilities and into upgradesof existing facilities to eliminate theneed for RPE;

• considering containment issues in thedevelopment of new pharmaceuticalcompounds so that manufacturing

processes and formulations are easierto contain;

• sharing good practices and successfulequipment designs via the internalweb;

• improving resource levels and compe-tency in occupational hygiene (thescientific discipline of assessing andcontrolling chemical exposures).

Resilience and Mental Well-beingResilience is the set of skills and behav-iours needed to be successful in themidst of a fast-paced and continuouslychanging work environment. It is thesame set of skills that helps prevent workrelated mental illness. GlaxoSmithKlineproactively identifies and manageschallenges to employee resilience andmental well-being to ensure businesssuccess through our people. We willcontinue to protect and enhance themental health of employees by fullyimplementing the requirements of theGlobal Resilience and Mental Well-beingStandard.

This includes:• ongoing identification and assessment

of job-related risks to mental well-being through such tools as theGlobal Leadership and Organisationalsurvey, numerous business initiatives,and an internet-based team assess-ment tool;

• reductions in risks and promotion ofthe general mental well-being ofemployees through such programmesas wellness initiatives and mentalhealth care support systems;

• early recognition and treatment ofillness, confidential investigation,


Programmes (cont.)

30

reporting and corrective actions toprevent recurrences.

GSK was identified as a ‘Beacon ofExcellence’ by the UK Health & SafetyExecutive (HSE) for our personal andteam resilience programmes. Since July2003, 150 teams have been through ouron-line and team assessment and reviewprocess. Analysis of the data shows aclear relationship between workplacepressure and individual health andperformance. Compared to the standardsset by the UK HSE, which were based ontwo longitudinal studies, GSK teamsperform significantly better in all four keyareas (relationships; demands; change;control). The GSK findings are cause forcelebration but individual teams’ profiles do vary.

Human ImmunodeficiencyVirus (HIV) GlaxoSmithKline provides HIV/AIDSeducation and healthcare programmesfor employees and ensures non-discrimi-nation. While arrangements differdepending on local circumstances, all the programmes are based upon a set of principles that reflect current bestpractice and draw upon Guidelinesagreed jointly by the InternationalOrganisation of Employers and UNAIDS.Included in the principles are the following:• we do not discriminate against any

employee based on HIV status;• we do not require HIV testing as a

prerequisite for employment;• we provide information and training

to staff on HIV and AIDS preventionappropriate to their needs;

• we ensure appropriate provision forthe care of HIV positive regularemployees, their long-term partnersand immediate families, includingaccess to voluntary testing withcounselling, and provision of anti-retroviral medicines;

• we maintain medical confidentiality at all times.

Process Safety and SafetyEngineering

Process SafetyControlling process hazards is a continu-ing programme in GlaxoSmithKline witha goal of minimising risk through the useof expert engineering design and goodmanufacturing processes. Many productsbegin with the formulation and process-ing of hazardous materials such asflammable solvents and combustiblepowders. Through Green Chemistry andGreen Technology programmes scientistslook for opportunities to eliminate theuse of these hazardous materials.

Where this substitution is not feasible our Process Safety Programme ensuresthat safety is built into the process.GlaxoSmithKline EHS Standards requireall hazardous operations to completeProcess Hazard Analysis (PHA) studiesthat include the identification of hazards,the evaluation of risk and the develop-ment and implementation of correctiveaction where needed. The Process SafetyProgramme is a continuing managementsystem that is in-place for the life-cycle ofevery process ensuring that the highestlevel of safety is maintained as theprocess is operated, refined and finallydecommissioned.


Programmes (cont.)

31

Operations use a Process Hazard AnalysisSystem in their routine operations. Thisweb-based system has standardised theHazard and Operability (HAZOP) method-ology across GlaxoSmithKline and allowsdatabase access for the sharing of hazardinformation and control strategies. In2004, we developed and launched a new Failure Mode and Effects CriticalityAnalysis (FMECA) system. This system isassisting engineers with the developmentof safer processes and ideal maintenancestrategies for these operations.

Safety EngineeringGlaxoSmithKline’s safety engineeringprogramme focuses on construction,plant safety and emergency responseactivities to ensure that our employees,contractors, visitors and the communityare protected from the operationalhazards within our facilities. Throughinnovative programmes such as the RiskAssessment and Control Processes,Construction Contractor SafetyProgramme, Capital Project EHS ReviewProcess and our Emergency ResponseProgrammes, we ensure that safety isbuilt into and maintained at our sitesworldwide.

A continuing process within our SafetyEngineering Programme is the develop-ment and distribution of safety engineer-ing guides and safety alerts. Theseintranet-based tools provide engineeredsolutions to fire, explosion, electrical,machine guarding and other operationalrisks. These guides provide a standardisedglobal approach to difficult safety risks.


Programmes (cont.)

32

Our EHS Plan for Excellence sets out astrategy to improve our EHS performanceover the ten-year period to 2010. Eachyear we focus on a different theme. Thepriority for 2004 was to develop policiesin response to external challenges such asclimate change.

In September 2003, we held a meetingof an external stakeholder panel (whichrepresented government, customers,suppliers, environmental groups andothers) to help us identify externalchallenges. Three key issues for GSKwere identified - pharmaceuticals in theenvironment, the use of chemicals andclimate change. In response, we devel-oped the following specific objectives for 2004:• work with external stakeholders to

review emerging issues;• draft a position statement on pharma-

ceuticals in the environment;• draft a position statement on the use

of chemicals;• draft a position statement on the

future use of energy;• implement a regulatory tracking

system for EHS.

In 2004, we made good progress againstthese objectives. We worked with theEnvironment Council to get feedbackfrom external stakeholders on the issuesrelating to pharmaceuticals in theenvironment, the use of chemicals andthe future use of energy. Following thisconsultation, we prepared discussiondocuments in each of these three areasand began to get feedback on themfrom employees. We will completeposition statements in these areas in 2005.

We also established a regulatory trackingprocess to alert us to emerging EHSissues in the USA and the EU. A networkof EHS specialists tracks regulationswhich are made available on a databaseto employees with EHS responsibilities.

In 2005 we will focus on ensuring that core programmes are in placethroughout the business. Our specificobjectives are to:• complete the implementation of our

EHS management system, which isaligned with ISO 14001 and OHSAS18001, at all operations;

• achieve acceptable audit scores at alloperations. Our aim is to achieve anaverage score of at least 75% in eachbusiness unit, with no site achievingless than 50%;

• achieve the published 2005 EHSglobal targets;

• analyse how close we have come tomeeting the strategic objectives origi-nally published in 2001 in the EHSPlan for Excellence;

• formalise our external stakeholderengagement process;

• review and revise as necessary the EHSPlan for Excellence for 2006-2010.

We are also working to develop a roadmap for sustainable development, whichoutlines the key steps that we will needto take to become an environmentallysustainable business. In 2004, wecommissioned a study by Forum for theFuture into the role of a pharmaceuticalcompany in a sustainable society. Wethen used the findings to develop a draftroad map, which will be finalised in2005.


EHS Plan for Excellence

33

James Hagan Ph.D., P.E.Vice President, Corporate Environment,Health and Safety

Our long-term plan forexcellence charts ajourney which begins withimproving our systems,progresses to leadership inEHS performance, andultimately brings us closertowards sustainability.

View letter from the VP,EHS on page 4.


EHS Plan for Excellence (cont.)

34

The EHS Plan for Excellence isGlaxoSmithKline’s strategic approach toenvironment, health and safety. It showshow GlaxoSmithKline’s environment,health and safety framework aligns withthe company’s vision, strategic intent andkey business drivers; and it shows howGlaxoSmithKline intends to progressthrough management systems to leader-ship and excellence.

In the EHS Plan for Excellence we enunci-ate our long-term aspirations for environ-ment, health and safety. Though werecognise that it may be difficult to deliv-er these aspirations quickly, they willguide the global organisation throughthe implementation of environment,health and safety management systemsto leadership and towards sustainabilityduring the period up to 2010.

To help focus global environment, healthand safety efforts on key strategic issuesand draw attention to a progressiveevolution from managing our key risks toadvancing our sustainability, the plan callsfor a yearly theme to be set. We haveprojected themes for the years until2010, but these recommendations willadjust year by year to take into accountcurrent business circumstances, long-termbusiness direction and emerging issues.

SystemsIMPLEMENTING MANAGEMENT SYSTEMS GLOBALLY

LeadershipBECOMING EHS LEADERS IN OUR INDUSTRY

ExcellenceREACHING FOR EHS BUSINESS EXCELLENCE

In 2004, our main focus was on respond-ing to external EHS challenges. Recognisingthe societal concerns about the possiblelong-term impacts of industry on theenvironment and the trend towardsgreater environmental regulation, wereviewed the issues and began to devel-op formal statements ofGlaxoSmithKline’s position on some keytopics. In particular, we considered:• concerns about the possible effects of

pharmaceuticals in the environment;• developments in chemicals policy

which could affect the use of somematerials in the long-term;

• the future use of energy and its impli-cations for greenhouse gas emissionsleading to climate change.

Further information about this work isgiven in our position statements.

We also implemented an EHS regulatorytracking process for the USA, EU and UK.This will enable us to ensure thatGlaxoSmithKline management stays alertto emerging environment, health andsafety issues that could affect thebusiness.

In the EHS Plan for Excellence, the end of2005 marks a transition where we willexpand upon traditional EHS programmesto include a focus on sustainability issues.Therefore, in 2005, we will be concen-trating on ensuring that core EHSprogrammes are in place and effective at all GSK operations worldwide. Coreprogrammes are those that are essentialto prevent injury, illness or harm to theenvironment and to ensure the continuityof GlaxoSmithKline’s business. Theseinclude the global systems that providegovernance, allow for an efficientapproach to EHS and promote transfer of learning around the organisation. Theyalso include local programmes that maydiffer depending on the type of opera-tion. For example, control of chemicalexposures will be a core programme in a pharmaceutical manufacturing site butmay not be relevant to a field sales forceoperation where driver safety is core.View further information about the EHSaction plan for 2005 on our website.


EHS Plan for Excellence (cont.)

35

GlaxoSmithKline’s EHS strategy of contin-uous improvement supports corporateresponsibility and encourages a sustain-able business culture. It is based on theprinciples of the GlaxoSmithKline Spirit:• Passion: GlaxoSmithKline works to

protect people and the environmentin a company dedicated to improvingthe quality of human life.

• Sense of Urgency: The absence ofEHS programmes could endanger thelives and health of GlaxoSmithKlineemployees and the quality of theenvironment.

• Entrepreneurial: We look for newways of working throughout theorganisation - from research anddevelopment to manufacturing andsales - in order to improve ourefficiency.

• Innovation: We want to be a leaderin the way we manage our EHSresponsibilities by adopting newapproaches to chemistry, manufactur-ing processes, waste treatment, safeworking, transparent reporting andeverything we do.

• Integrity: GlaxoSmithKline includesresponsibility for good environment,health and safety management in ourdefinition of integrity. It is fundamen-tally the right thing to do.

The EHS strategy also aligns withGlaxoSmithKline’s five business drivers:

PeopleThe single greatest source of competitiveadvantage is GlaxoSmithKline’s people. It is vital that we protect the health andsafety of employees, contractors, visitorsand others affected by our operations.We will design our facilities and processes,

conduct assessments and provide trainingin order to eliminate work-related risks tosafety and health. We will focus onemployee health enhancement, mentalwell-being, causes of absence and methods of rehabilitation in order to have a productive and resilient work force.

New Product PortfolioOur new products are carefullydesigned to help millions of peoplearound the world live longer, healthierand happier lives. To treat disease, theproducts must have biological activityand as a result have potential EHS risksand impacts throughout their life-cycle(i.e. from raw material acquisition toresearch and development and manufac-turing through to patient use and disposal).We will apply the principles of productstewardship throughout our organisationto deliver positive EHS benefits andminimise risks to our business, peopleand the environment. Product steward-ship encompasses the assessment of thehealth, safety (excluding patient safety,which is assessed separately), andenvironmental risks created during allstages of the product’s life-cycle and inparticular at the key decision stages inresearch and development. We will alsoapply product stewardship principles toour contract manufacturers and keysuppliers.

Product CommercialisationEnvironment, health and safety play animportant role in commercialisingproducts. By integrating environment,health and safety planning into decision-making on manufacturing processes,packaging design and product labelling,


Strategy

36

we help differentiate our products andprotect and extend product life-cycles. Byembracing health and safety principles,we can minimise motor vehicle accidentsand so enhance the productivity of oursales organisation. By consideringenvironmental principles, we canminimise the energy consumption of thesales operations and therefore theirimpact on the environment.

Global CompetitorAs a global competitor,GlaxoSmithKline seeks to be a leader in EHS within the pharmaceutical andconsumer health sectors by applying bestbusiness processes globally and fosteringa culture of continuous improvement. As a global corporate citizen, we willdemonstrate our commitment to corpo-rate responsibility by implementing globalstandards, guidelines, targets andmanagement systems and by auditingour programmes and reporting publiclyand openly on performance. We will seekdialogue with external stakeholders andconsider their views when developing ourapproaches to EHS management.

Operational Excellence GlaxoSmithKline’s operations mustachieve legal compliance with EHSregulations. In the spirit of operationalexcellence they must also continuouslyimprove performance particularly in theareas of accident and occupational illnessprevention, waste minimisation andemissions reductions. We seek tointegrate EHS aspects into businessprocesses, such as capital planning,decision-making, purchasing, trainingand communications.

Strategy (cont.)

37

Since the formation of GSK we have hadannual themes and objectives. This listdemonstrates progress we have madeand where we want to go.

EHS Theme for 2001: Layingthe Foundations

Specific Objectives:• Implement a new GlaxoSmithKline

EHS organisation• Define the GlaxoSmithKline EHS

strategy• Integrate EHS management systems

from the heritage companies• Establish EHS improvement targets;• Involve internal stakeholders

EHS Theme for 2002: Buildingthe Framework

Specific Objectives:• Develop programme implementation

plans and schedules• Develop GlaxoSmithKline EHS guide-

lines and the audit programme• Launch an intranet system to support

EHS programmes• Measure improvements against EHS

targets• Launch the CEO’s EHS Excellence

Awards• Establish a dialogue with external

stakeholders


Themes

38

EHS Theme for 2003: ReducingKey EHS Risks

Specific Objectives:• Initiate a driver safety programme• Assess occupational chemical

exposures• Develop tools to manage stress

and ergonomics• Enhance process safety focus

and tools• Ensure site emergency plans are

in place• Provide tools for new product

development

EHS Theme for 2004:Responding to External EHSChallenges

Specific Objectives:• Work with external stakeholders to

review emerging issues• Draft a policy on pharmaceuticals in

the environment• Draft a policy on the use of chemicals• Draft a policy on the future use

of energy• Implement a regulatory tracking

system for EHS

EHS Theme for 2005:Completing Core EHSProgrammes

Specific Objectives:• Complete the implementation of EHS

management systems at all operations• Achieve acceptable audit scores at

all operations• Deliver on the published 2005 EHS

global targets• Analyse gaps against the strategic

objectives published in the EHS Planfor Excellence.

• Formalise the external stakeholderengagement process

• Review and revise as necessary theEHS Plan for Excellence for 2006-2010


Themes (cont.)

39

GlaxoSmithKline has set targets forimproving environment, health and safetyperformance to be reached by the end of2005, starting from a baseline set in2001. These improvement targets are anintegral part of the EHS Plan forExcellence.

We base GlaxoSmithKline’s overall EHSimprovement targets on informationabout practical improvement plans andforecasts from all manufacturing opera-tions. We compare proposals for compa-ny targets with benchmarking informa-tion and our environment, health andsafety professionals, senior managers andmanagement teams throughout thebusiness closely review them.

In addition to company targets, eachoperation has improvement targets basedon its own unique EHS profile, whichincludes local EHS related projects. Thismeans sites can focus their resources onareas of greatest potential impact toenvironment, health and safety. Siteswith the greatest potential impact set themost aggressive reduction targets, whilesites with less potential impact set contin-uous improvement targets. In this wayeach operation has improvement targetsthat should result in GlaxoSmithKline’sachieving the overall company targets.

In 2003, GlaxoSmithKline implemented a process to annually reconfirm sitecommitment to the 2005 targets they set in 2001. We also conductedworkshops in which sites shared projectsand practices they had implemented toreduce their impacts on the environment.This sharing of best practices will helpmaintain our progress toward achievingour 2005 targets. See our progress totargets on page 125.


Targets

40

David PulmanPresident, Global Manufacturing & Supply

Meeting these 2005 EHS commitments globallywill place us in a greatposition in our quest for leadership and sustainability.


Stakeholder Engagement

41

We engage with a range of stakeholdersto help us understand external perspec-tives and identify emerging issues. Herewe report our engagement with stake-holders on environmental issues. SeeEngagement with Stakeholders on ourwebsite for details of how we engagewith stakeholders on other corporateresponsibility issues.

In the past, we have held ad hoc stake-holder meetings to obtain feedback onour EHS performance and plans. InSeptember 2003 we held a majorworkshop of external stakeholders tohelp us identify emerging challenges. We plan to establish a more permanentstakeholder panel in 2005 to provideongoing advice to GSK on EHS issues.

The 2003 stakeholder workshop identi-fied three key external challenges -pharmaceuticals in the environment, theuse of chemicals and the future use ofenergy. In 2004, we worked with theEnvironment Council to interview around20 stakeholder organisations (includingNGOs, policy makers, regulators,customers, suppliers and trade associa-tions) to help us develop position statements on these issues. See EHSPlan for Excellence on page 33 for moreabout the position statements which will be published in 2005.

We also partner with a number ofenvironmental organisations in specificareas. For example, in 2004 we commis-sioned a study by Forum for the Futureinto the role of a pharmaceutical compa-ny in a sustainable society, and this isbeing used to help us develop a roadmap for sustainable development.Another partnership is with the

environmental organisation EarthwatchInstitute (Europe). GSK is a member ofEarthwatch’s Corporate EnvironmentalResponsibility Group and also fundsEarthwatch to develop its field researchand conservation projects in the UK andsend schoolteachers on these projects aspart of its educational programme. Forthe first time in 2004, we ran a competi-tion to select a GSK employee to participate in a two-week Earthwatchexpedition overseas.

Many of our sites also engage withstakeholders locally, for example, throughopen days, newsletters and communityprojects.

We participate in many surveys of ourEHS practices and performance forinvestment management companies and rating organisations. In 2003, TheBusiness in the Environment survey ratedGlaxoSmithKline first in the pharmaceuti-cal sector for the third year, rating us inthe Premier League of companies with ascore of over 96%. We are included inthe Dow Jones Sustainability Index and inthe UK FTSE 4 Good and we work closelywith major socially responsible investmentgroups in the UK.

In addition to the stakeholder dialogueconducted by Corporate Environment,Health and Safety on behalf of thecorporation, many of our operations havecontinuing dialogue with their neighboursand communities through newsletters,open days and outreach projects. Thereare regular contacts with regulators and local authorities with a number ofGlaxoSmithKline’s EHS specialists servingon official committees and workinggroups to help develop better regulationsfor the future.


Benchmarks

42

EHS AuditsWe carry out Environment, Health andSafety (EHS) audits to assess implementa-tion of our EHS management system andstandards. The audits also assess sites’compliance with key legislation. They arecarried out by internal auditors who arecertified as lead auditors against theinternational environmental managementstandard ISO 14001.

We aim to conduct EHS audits at eachoperational site at least once every fouryears. We carry out more frequent visitsat selected sites, depending on an assess-ment of risk and the issues raised byprevious audits.

In 2004, 33 sites were audited includingthree key office locations. Two thirds ofsites achieved acceptable scores (whichwe define as over 70%). The averagescore across all sites audited was 71%.Ten sites in Belgium, Germany, Ireland,Japan, Turkey, UK and the US achievedhigh scores of over 80%. One site in theUK achieved a leadership score of over90%. See more on Audit Achievementon page 57.

The highest scores were on environmen-tal issues. We identified a number ofhealth and safety issues which requireattention. See how we manage Healthand Safety on page 126 for details of theissues identified.

All sites are required to develop plans toaddress any weaknesses and opportuni-ties to improve identified in the audit.Auditors monitor sites’ progress in imple-menting the plans. In 2004, the EHSaudit process and scoring system werefurther refined based on experience andfeedback. We are testing EHS auditingsoftware on our intranet site to help theauditors track progress and aim to have a fully functional version ready in 2005.

EHS CertificationIn 2004, four sites achieved dual certifica-tion to the international environmentalmanagement standard ISO 14001 andthe international health and safetystandard OHSAS 18001 for the first time.One site did not renew its certification in2004 and one site certified only the utili-ties area. This means that 21 out of 84pharmaceutical and consumer manufac-turing sites are now certified (14 sites arecertified to both ISO 14001 and OHSAS18001, and seven sites are certified toISO 14001 only) and one site’s utility areais certified to both. The certified sites arein China, Egypt, France, Germany, India,Italy, Mexico, Poland, Spain, Turkey andthe UK.

We are working to increase site certifica-tion and expect to have around a thirdcertified by the end of 2005. We willthen be in a position to move towardsglobal certification.


Audits and Certification

43

An EHS audit is a key element of thecontinuous improvement process andassesses implementation and confor-mance with the Global EHS Standardsand with key legislation. In 2004, theEHS Audit process and scoring systemwas further refined based on experienceand feedback. All auditors have broadEHS experience and knowledge and as a minimum are certified as lead auditorsagainst the international ISO 14001Environmental Management standard.

In 2004, auditors assessed 33 sitesincluding three key office locations. Thelevel of performance against many of ourenvironmental standards was better thanperformance against some of the healthand safety standards. Specifically, aspectsrelated to employee health and handlingof chemical agents were identified forimprovement. As part of the continuousimprovement process, auditors monitorprogress on actions arising from auditfindings. The development of the myEHSweb-based tool to assist with auditingcontinued in 2004 and a version wastested at two audits. The myEHS auditsoftware will be used for all audits andassociated action tracking in 2005.

Certification of EHSManagement Systems During 2002 and 2003, CEHS conducteda pilot certification programme with ourmanufacturing operations to determinethe feasibility of obtaining company-widecertification to the internationalstandards on environmental managementsystems (ISO 14001) and health andsafety management systems (OHSAS18001). Under the pilot programme, sixmanufacturing sites achieved certificationto international standards ISO 14001 andOHSAS 18001. In 2004, five additionalsites successfully completed the processand one site failed to renew its certifica-tion. In total, there are now 22 manufac-turing sites (one only certified its utilitiesarea) within GlaxoSmithKline withmanagement system certification withmore expected in 2005.


Audits

44

In 2004, our capital investment inenvironmental projects was £9.4 millionand our operating and maintenance costswere £43 million. This expenditure relatesto wastewater treatment, waste manage-ment and air pollution control.

Performance


Environment Costs

45

Data Charts

• CapitalInvestment

• Operations andMaintenanceCostsCapital Investment

Waste Wastewater Air

(million £)

2001 3.5 11.1 9.9

2002 2.5 11.5 4.5

2003 4.8 1.6 4.6

2004 3.4 2.5 3.5

Capital Investment

In 2004, there was a decrease in capitalinvestment of 14.5% and an increase inoperations and maintenance costs of10.3%. Capital investment has decreasedsince 2001 due to cost control measuresand rationalisation of manufacturingsites. Operation and maintenance costsare cyclical and therefore vary year on year.


Environment Costs (cont.)

46

Waste Wastewater Air

(million £)

2001 29.1 10.6 1.7

2002 29.7 15.2 2.4

2003 25.8 11.4 1.8

2004 30.3 10.5 2.3

Operations and Maintenance Costs

Operations and Maintenance Costs

We have a wide range of awareness-raising and training initiatives on EHS,supported by a detailed EHS section onour intranet (called myEHS) whichincludes policies, standards, guidelines,tools, examples of best practice andnews. See more on myEHS on page 61.

Our Chief Executive Officers’ EHSExcellence Awards scheme recognisesoutstanding efforts in EHS and helps raisethe profile of EHS issues around thebusiness.

We prepare regular EHS bulletins whichare distributed to all sites for posting onbulletin boards. Three bulletins werecirculated in 2004. We also includearticles on EHS in our internal magazine(GSK Spirit), our manufacturing magazineand site newsletters.

GSK has two key awareness raisingevents - an Environment Week held every June (to coincide with the WorldEnvironment Day) and an annual Healthand Safety Week held every October (tocoincide with the European Health andSafety week and Fire Safety AwarenessMonth in the United States). Informationkits are sent to all sites to help themdevelop ideas and plan activities. In 2004,over 7,600 employees from 65 sites in 27countries took part in the EnvironmentalWeek. Examples of activities included treeplanting, computer recycling, a no carday, and pledges to reduce energy use.We also ran a competition during EarthWeek for the best environmental initia-tive, and funded the winner on a two-week conservation expedition run byEarthwatch.

In the summer of 2004, we held ourannual regional meetings for EHS profes-sionals in manufacturing to share infor-mation and best practice. These eventswere attended by more than 100 EHSprofessionals.

Each year EHS professionals get togetherin a series of regional meetings to shareexperiences and good practices with theirpeers. These EHS Network meetingsprovide a forum for GSK EHS profession-als to meet with their Corporate EHSliaisons and their regional peers.Participants are informed and consultedabout improvements in Corporate EHSprogrammes and progress toward GSKEHS performance goals. The forum is alsoan opportunity for problem solving andexchange of best practice.

While training for employees takes placeat site level, technical information tosupport training is provided centrally by avariety of mechanisms, including myEHS,to back-up training in areas covered bythe Standards.

See more on EHS Communication onpage 59.


Training and Awareness

47

Jack ZieglerPresident, Consumer Healthcare

The success of our brandsis driven by our productsand our people. Core EHSProgrammes support bothand help to maintain ourbusiness reputation.

Our Chief Executive Officer’sEnvironment, Health and Safety (EHS)Excellence Awards Programme - run forthe third year in 2004 - recognises andrewards GSK sites for innovation in EHS.The winners are chosen by a panel thatincludes experts from academia, govern-ment and NGOs.

There are three categories of awards -Community Partnership, GreenChemistry/Green Technology and the EHS Initiative Award (including separateawards for environment and safety). Eachwinner receives a trophy and selects acharity to receive a donation.

In 2004, there were 120 entries from 64GSK sites in 32 countries - 27% moreentries than the previous year. The 2004awards recognise achievements in thecalendar year 2003. The winners were:

EHS Community Partnership

1st Place: Evreux, France for "EHSSchool Challenge"

GSK business division - GlobalManufacturing and Supply, NewProduct and Global Supply

The EHS School Challenge aims to raiseawareness of EHS issues among localschool children. In 2003, over fourteenschools took part in the initiative. Seecase study on page 3.

2nd Place: Xochimilco, Mexico for"Working with our neighbours"

GSK business division - PharmaceuticalsInternational and Global Manufacturingand Supply, Regional Pharma Supply

The site supports a range of projects tohelp Mixteca ethnic communities.

Examples include: training for over fourthousand “health promoters”, support-ing a clinic for cervical-uterine cancerand assisting local women to establish a chicken farm for food and income.

3rd Place: Sonepat, India for "Project Pragati"

GSK business division - GlobalManufacturing and Supply, ConsumerHealthcare Supply

Project Pragati (pragati means develop-ment) provides support to localcommunities, including an eye clinic (to address the high incidence of eyeproblems in the area), training of villagewomen as seamstresses, traffic andpedestrian safety education sessionsand helping to fund a fire engine.

Green Chemistry/Technology

1st Place: Verona, Italy for"Environmentally Friendly Synthesisof GW597599B"

GSK business division - Research andDevelopment

Novel techniques have been used toremove several hazardous substances,including triphosgene, from the produc-tion process of GW597599B (which isbeing tested to prevent chemotherapy-induced nausea and vomiting). See casestudy on page 6.

2nd Place: Cork, Eire for "GW572016Solvent Usage Reduction Project"

GSK business division - GlobalManufacturing and Supply, PrimarySupply and Antibiotics and Researchand Development


CEO’s EHS Excellence Awards

48

A 35% reduction in solvent use andenergy savings have been achieved byre-designing the process for makingGW572016 (used to treat solidtumours).

3rd Place: Stevenage, UnitedKingdom, for "Development ofGW273629 Route of Manufacture"

GSK business division - Research andDevelopment

A new process has been developed toproduce GW273629 (used in the treat-ment of migraines). This avoids the useof dioxane, a carcinogenic chemical,and eliminates the use of DMF, asolvent listed as a reproductive hazardunder the Solvent Emissions Directive. It also saves energy and reduces waste.Overall, improvements to the processhave reduced costs by £1,000 per kg,an annual saving of £30 million basedon projected peak production of 30tonnes per year.

EHS Initiative - Environment

1st Place: Bogotá, Colombia for"Pharmaceutical WasteBioremediation"


The pioneering use of reed bedtechnology for the treatment ofpharmaceutical waste in Colombia hasled to a 60% reduction in the cost offinal waste treatment. See case studyon page 82.

2nd Place: Cairo, Egypt for "WasteRe-use and Reduced ResourceConsumption"

GSK business division - GlobalManufacturing and Supply, RegionalPharma Supply

A new process was designed to re-usewaste gelatine in the encapsulationprocess - reducing waste and resourceconsumption.

3rd Place: Barnard Castle, UnitedKingdom for "Increased MassConversion Efficiency ofCephalosporin Oral Products"


Improvements to the process of produc-ing cephalosporin (an antibiotic) havesignificantly reduced the amount ofwaste - helping to divert over 1 tonneper year of active pharmaceutical ingre-dient from incineration.

EHS Initiative - Safety

1st Place: Barnard Castle, UnitedKingdom for "ErgonomicImprovements"


The site has successfully raised employ-ee awareness of ergonomic risks. Teamshave identified and completed 59ergonomic improvement projects andergonomic experts are consulted on thedesign of new equipment. See casestudy on page 145.

CEO’s EHS Excellence Awards (cont.)

49

2nd Place: Nabha, India for "EHSStrategy and Mechanical ScrapingMachine"


The site, which produces malted food,implemented a new EHS Strategy. Thisresulted in the development of a newmechanised scraping machine (used inthe tray drying process) which hasreduced workers’ exposure to movingparts and the risk of repetitive straininjury.

3rd Place: Mayenne, France for"Control of Driving Risks"

GSK business division - GlobalManufacturing and Supply, PrimarySupply and Antibiotics

The site has organised driving safetycourses for employees for five years.Each year about 50 employeescomplete a one-day training session,including classroom presentations andpractical workshops where drivers learnto control their cars in emergencies.

See the following pages for more aboutthe awards programme and winners fromprevious years.


50

The Chief Executive Officer’sEnvironment, Health and Safety (EHS)Excellence Awards Programme promotesimprovements in GlaxoSmithKline’s use ofhuman, environmental and economicresources. It rewards innovation, effectiveover the long-term, that can be sharedwithin the company. Nominations ofprojects to be considered in the programmemay come from any part of the organisa-tion. A panel of experts recommendsaward winners from a list of finalistprojects prepared for them by a reviewcommittee internal to GlaxoSmithKline.The expert panel is drawn from acade-mia, government and non-governmentorganisations, and includes a member ofthe Board of Directors. Sir ChristopherHogg, Chairman of the Board in 2004, participated on the panel.

The programme makes awards in threecategories. Initiatives that foster responsi-ble use of human, environmental andeconomic resources with the localcommunity may be awarded an EHSCommunity Partnership Award. Projectsthat benefit environment, health andsafety through new and efficientchemistry or technology may win a GreenChemistry/Green Technology Award.Programmes that demonstrate improve-ments in environment or health andsafety management and performancemay win an EHS Initiative Award. In2004, because of the large number ofentries in this category, awards weremade in two subgroups: EHS Initiative -Environment and EHS Initiative - Safety.Each winning site is recognised with aspecially designed trophy and the opportu-nity to make a donation to a charitableorganisation selected by the winning team.

In 2004, winning project teams (seepage 50) nominated the followingcharitable organisations to receivedonations:

• Abbasia Chest Hospital, Egypt is aspecialist, teaching hospital in Cairo.

• AIL Verona Onlus, Italy, researchesleukemia and other related illnessesand provides aid and assistance topatients and their relatives.

• Cancer Research UK, UnitedKingdom, researches into the nature,causes, diagnosis, prevention, treat-ment and cure of all forms of cancer.

• Cartoon Art Trust, United Kingdomis dedicated to preserving the best ofBritish cartoons, caricatures, comicsand animation.

• Charities Aid Foundation, Indiacreates a sustainable voluntary sectorwith resources contributed by relation-ships built on trust between NGOsand donors. CAF India has pioneeredcorporate community initiatives withseveral companies in India.

• Fundacion Mexicana Para La Salud,Mexico provides students in thecountryside of Mexico with education-al materials about the prevention ofAIDS, other sexually transmitteddiseases and unwanted pregnancies.

• Irish Cancer Society, Ireland, is thelargest funder of cancer research inIreland.

• La Prevention Routière, Francecampaigns for safe driving in Franceand Europe.


51

• Maison de l’Enfant et desDécouvertes, France provide youngpeople with educational and leisureactivities to promote interest in andunderstanding of science and technology.

• Millview Resource Centre,Northern Ireland responds tocommunity needs through a range ofinitiatives and support services, withlocal participation and in partnershipwith others.

• National Children’s Home, UnitedKingdom runs more than 500projects for the UK’s most vulnerablechildren, young people and theirfamilies and in doing so, supportsover 140,000 people.

• Northumberland Wildlife Trust,United Kingdom advances theprinciples and practice of sustainabledevelopment and biodiversity conser-vation.

• Teesdale Opportunities forDisabled Youngsters, UnitedKingdom provides advocacy recre-ation and leisure activities for therelief of young people with disabilities.

• World Wildlife Fund, UnitedKingdom works to protect endan-gered species and their habitats andaddresses global threats to nature.

Awards 2003

In 2003, the second year of the awardsprogramme, 94 projects were nominatedto the programme, over a third morethan in 2002. Over a third more sites (53)in 20 countries participated. The researchand development organisation enteredprojects for the first time.

In 2003, 11 projects received tophonours. The winners were:

EHS Community Partnership

First Place:“Good Corporate Citizenship”, GlobalManufacturing & Supply, ConsumerHealthcare Supply, Rajahmundry, India.

Second Place: “Managing the Marshes”, GlobalManufacturing & Supply, Primary SupplyDartford, United Kingdom.

Third Place:“Leadership on Reduction of MercuryContributions to Area Surface Waters”,US Pharmaceuticals, Research TrianglePark, United States.

Green Chemistry / Technology

First Place: “Discovery and Development of a GreenProcess”, Research and Development,Tonbridge, United Kingdom.

Second Place: “Tranilast: Improved Production Process”,Research and Development, UpperMerion, United States.


52

Third Place (2):“Nano Filtration Curbs ProductionLosses”, Global Manufacturing andSupply, Primary Supply Ulverston, United Kingdom tied with“Photochemistry - A Brighter Future”,Research and Development, UpperMerion, United States.

EHS Initiative

First Place:“Resource Reduction: WaterConservation, Effluent Reduction andTurbo Generator”, Global Manufacturingand Supply, Consumer Healthcare Supply,Rajahmundry, India.

Second Place: “Bio-composting of Solid Wastes”,Global Manufacturing and Supply,Consumer Healthcare Supply, Nabha andRajahmundry, India.

Third Place (2):“Observations in the Workplace Leadingto Safety -OWLS” Global Manufacturingand Supply, Primary Supply, Cork, Irelandtied with “EHS Risk Mitigation Initiatives”, GlobalManufacturing and Supply, InternationalSupply, Thane, India.

in 2003, winning project teamsnominated the following charitableorganisations to receive donations:

• Brigham and Women’s Hospital,United States is a teaching hospitalof Harvard Medical School, a pioneerin women’s health and in many otherareas of medicine.

• Charities Aid Foundation, Indiacreates a sustainable voluntary sectorwith resources contributed by relation-ships built on trust between NGOsand donors. CAF India has pioneeredcorporate community initiatives withseveral companies in India.

• Cystic Fibrosis Trust, UnitedKingdom funds medical and scientificresearch aimed towards understand-ing, treating and curing cystic fibrosis.It also aims to ensure that people withcystic fibrosis receive the best possiblecare and support in all aspects of theirlives.

• The Hospice in the Weald, UnitedKingdom provides inpatient andcommunity nursing as well as familysupport and bereavement counsellingin Kent and Sussex.

• Leukaemia Research Fund, UnitedKingdom improves treatments, findscures and investigates the causes andprevention of cancers of the bloodand related conditions, in children and adults.

• Maharogi Sewa Samiti Warora,India treats, trains and rehabilitatesthe leprosy afflicted and other handi-capped people. It also trains schooldropouts in rural areas of India.

• Millview Resource Centre,Northern Ireland responds tocommunity needs through a range ofinitiatives and support services, withlocal participation and in partnershipwith others.

• National MS Society, United Statespromotes research, educates, advocateson critical issues, and organises a widerange of programmes includingsupport for the newly diagnosed and


53

those living with multiple sclerosisover time.

• Otter Valley Association, UnitedKingdom works with local govern-ment and environmental organisationsto interest residents and visitors in thehistory, geography, natural history,architecture and future of the OtterValley in Devon.

• SANE, United Kingdom is one ofthe UK’s leading charities concernedwith improving the lives of everyoneaffected by mental illness.

• Shelter, United Kingdom preventsand alleviates homelessness by provid-ing information, advice and advocacyfor people with housing problems.

• The Tammy Lynn Center forDevelopmental Disabilities, UnitedStates, offers educational, residentialand family support services to childrenand adults with special needs.

Awards 2002

In 2002, the first year of the awardsprogramme, 67 applications werereceived from 40 sites in 20 countries.The winners in the first year were:

Community Partnership:

First Place:“Helping Hands To Small Businesses”Ulverston, GMS Primary Supply.

EHS Initiative

First Place: “Innovative Health & Safety Conceptsand Approach for Construction of NewHorlicks Facility” Sonepat, India. GMSConsumer Healthcare.

Second Place:“Waste Management Projects atAnkleshwar” Ankleshwar, India. GMSPrimary Supply.

Third Place:“Leave Work The Way You Came – A Total Approach to Safety in aManufacturing Organisation” Aiken,USA. GMS Consumer Healthcare.

Special Commendation:“Integral Waste Management System”Bogota, Colombia. GMS ConsumerHealthcare.

Special Commendation:“Safety And Environmental Achievementsin Demolition And Construction ActivitiesFor Augmentin XR Tablet” Quality Road,Singapore. GMS Primary. There were noGreen Chemistry/Green Technologyawards made in 2002.

In 2002, winning project teams nominat-ed the following charitable organisationsto receive donations: • American Cancer Society, USA;• Charities Aid Foundation, India; • Missionaries of Charity, India; • Ulverston Life Education Support

Group, UK.

Members of the external selection panelwho helped in the adjudication of theawards selected the following organisa-tions to receive donations from GSK ontheir behalf:• Brigham and Women’s Hospital, USA; • Fairlynch Art Centre & Museum, UK; • Millview Resource Centre, Ireland; • Otter Valley Association, UK; • Oxfam, UK.


54

Reward and recognition are tools toshare best practices and to recognise andencourage individuals and teams to dotheir best work and to find innovativesolutions to problems and challenges.Our reward and recognition programmeincludes the Chief Executive Officer’sEnvironment, Health and Safety (EHS)

Excellence Awards Programme forinnovation and initiative in severalcategories, a milestone certificateprogramme that recognises sites forworking without lost time injuries orillnesses and an audit achievement certificate programme that recognisessites for attaining high audit scores.

Reward and Recognition

55

At GSK, all operations strive to workwithout experiencing any lost timeinjuries or illnesses. In order to share thegood practices that help achieve this levelof safe working and to recognise sitesthat achieve it, certificates are issued foreach level of 1 or more million hoursworked without a lost time injury orillness. Sites apply for these certificateswhen they reach the million hourmilestones and those with 1 million hours receive certificates signed by theirbusiness heads. For sites with 2 million ormore hours worked without a lost timeinjury or illness, the certificates are signedby the Chief Executive Officer in recogni-tion of the achievement. The recognisedsites often celebrate their achievements,and they are recognised within theirbusiness units thus creating opportunitiesfor sites with these achievements toshare with other sites their strategies forachieving this level of safe working.

In 2004, a category of achievement wasadded to recognise sites that work 3 ormore years without a lost time injury orillness. The sites that apply for thesecertificates are generally small sites that

do not attain the level of 1 million hoursworked in a 3 year period.

Milestones Achieved in 2004

3 years worked without a lost time injuryor illness:• Suzhou, China.

1 million hours worked without a losttime injury or illness:• Aranda, Spain• Barnard Castle, UK• Karachi F268, Pakistan• Nabha, India• Poznan, Poland• Sonepat, India• Tianjin, China• Ulverston, UK• Upper Merion, US• Upper Providence, US

2 million hours worked without a losttime injury or illness:• Jeddah, Saudi Arabia• Rajahmundry, India• Zebulon, US

Injury and Illness Milestones

3 million hours worked without a losttime injury or illness:• Chittagong, Bangladesh• Jurong, Singapore• West Wharf, Pakistan

4 million hours worked without a losttime injury or illness:• Cidra, Puerto Rico

5 million hours worked without a losttime injury or illness:• Mississauga, Canada• Xochimilco, Mexico

Milestones Achieved in 2003

1 million hours worked without a losttime injury or illness:• Boronia, Australia• Cairo, Egypt• Capetown, South Africa• Clifton, US• Karachi Landhi, Pakistan• Worthing, UK

2 million hours worked without a losttime injury or illness:• Bad Oldesloe, Germany• Cidra, Puerto Rico• Jurong, Singapore• Karachi B63, Pakistan• Kuala Lumpur, Malaysia• Mississauga, Canada• Nabha, India• Thane, India• Ware, UK• West Wharf, Pakistan

3 million hours worked without a losttime injury or illness:• Barnard Castle, UK• Karachi F268, Pakistan• Lahore, Pakistan• Mysore, India• Xochimilco, Mexico

4 million hours worked without a losttime injury or illness:• Bangalore, India• Dartford Primary, UK• Zebulon, US

Injury and Illness Milestones (cont.)

56

High audit scores indicate good manage-ment systems and good practices in placeat sites. In 2004, a programme was initi-ated to give special recognition to sitesthat have particularly good systems andpractices in place. Sites that achieve auditscores of 90% or higher are consideredto be in a leadership category and receivecertificates signed by the Chief ExecutiveOfficer. Sites that achieve 80% to 89%receive certificates signed by theirbusiness heads.

Audit Achievement

57

2004 Audit Achievement Certificates

Barnard Castle, UK Global Manufacturing and Supply 94

Beckenham, UK Pharma R&D 85

Cork, Ireland Global Manufacturing and Supply, 85Pharma R&D

Dresden, Germany Biologicals 84

Gebze, Turkey Global Manufacturing and Supply 83

Irvine, UK Global Manufacturing and Supply 83

Tres Cantos, Spain Pharma R&D and Commercial 83

Imaichi, Japan Global Manufacturing and Supply 83

St Louis, US Global Manufacturing and Supply 81

Rixensart, Wavre, Biologicals 80Gembloux, Belgium

Audit Achievement (cont.)

58

2003 Audit Achievement Certificates

Research Triangle Park, Pharma R&D 95US

Jurong, Singapore Global Manufacturing and Supply 90

Upper Merion, US Pharma R&D 89

Dartford, UK Global Manufacturing and Supply 86

Ulverston, UK Global Manufacturing and Supply 86

Stevenage, UK Pharma R&D 85

Mississauga, Canada Global Manufacturing and Supply 83

Panama City, Panama Global Manufacturing and Supply 81

Verona, Italy Global Manufacturing and Supply 81

Jacareqagua, Brazil Global Manufacturing and Supply 80

Buenos Aires, Argentina Global Manufacturing and Supply 80

Our EHS communications follow an inter-nal communication plan that includes asgoals: raising general awareness, educat-ing, informing and inspiring, influencinga culture change within GSK about EHSand supporting achievement of sustain-able development. Our audiences rangefrom senior management and businessleaders to all employees.

The main way we communicate iselectronic with email and informationposted on myEHS (our EHS website) butwe also provide some documents inprinted forms. Our communicationsinclude presentations by the VP CEHS tothe Board of Directors Audit Committeeand the Corporate Executive Team as wellas to the management teams of variousorganisations.

Messages include technical informationfor EHS professionals, general awarenessfor all employees and EHS managementinformation for higher level management.

EHS Communication

59

To raise awareness of strategic environ-ment, health and safety issues and toencourage a more proactive EHS culture,GSK sites participate in two annual,voluntary programmes. The first,EarthWeek, held in June to coincide withthe World Environment Day, encouragesemployees to think about their impact onthe environment. The second, Health &Safety Week, held in October to coincidewith the European Health and Safetyweek, encourages them to addresspotential risks at work and at home.Communication kits for both eventsprovide publicity and activity ideas. Sitesreport their programmes each year andthe level of participation and range ofactivities is publicised throughout GSK. In 2004, over 7,600 employees from 65 sites in 27 countries took part inEarthWeek and over 13,800 employeesfrom 67 sites in 29 countries took part in the Health & Safety Week activities.

There are five EHS publications that areavailable electronically and in print. • The EHS Plan for Excellence, GSK’s

10-year strategy for EHS and its yearlyaction plan are published primarily forGSK senior management and EHSprofessionals within GSK, but they arealso made available for external stake-holder consultation.

• The EHS Report, provides a printedversion of the EHS information on thiswebsite. It is primarily for externalstakeholders who specifically requestprinted information.

• The annual CEO’s EHS ExcellenceAward Yearbook, primarily for EHSsite-based management, is a vehiclefor sharing the innovative EHSpractices of sites that win the year’sawards.

• The graphic and copy-light “EHSBulletin”, is designed for posting onbulletin boards and is published threetimes a year. It targets employees whodo not use e-mail or the intranet as apart of their daily work and is writtento inform about the relationship ofCorporate EHS programmes to siteEHS activities.

• A wall calendar featuring EHS activi-ties and achievements of GSK sitesworldwide is distributed annually toGSK’s EHS professionals. The photo-graphs and captions highlight GSKpeople whose activities have advancedGSK’s long-term EHS Plan forExcellence.

Awareness

60

Underpinning all of the EHSManagement framework, providingsupport for all programmes and enablingcollection and analysis of the data foundon this website is a state of the artintranet system, the myEHS Communitywebsite. It has four main functions.

• It is a communication vehicle forregular news on EHS relatedprogrammes

• It is a comprehensive EHS informationmanagement system that providessites with tools for managing all oftheir EHS responsibilities and measur-ing their progress

• It is the repository for EHS Standards,Guidelines, Tools and other EHS infor-mation as well as the central point forEHS-related announcements, newsand listing of events as well as a placeto share good EHS practices and ideas

• It is the central collection point forEHS data provided on this website andused by GSK and its business units tomonitor progress and drive continuousimprovement

Some of the tools on myEHS include:

• creation and distribution of MSDS;• eco-design, occupational hygiene,

hazard assessment and other tools;• for sites that are currently ISO certified

or that are in the process of ISO certi-fication, myEHS provides all of thesupport functionality needed for therequired documentation and EHSmanagement.

Structurally, myEHS is a combination oftwo commercial software packages,several collaborative working tools usedwithin GSK and other informationtechnologies.

myEHS

61

An increase in greenhouse gases in theatmosphere is widely thought by climatescientists to be causing a rise in theearth’s temperature, leading to climatechange.

Burning fossil fuels for heat and powerreleases carbon dioxide (CO2) - the mostsignificant greenhouse gas.

GSK’s climate impact comes from energyuse from our facilities, transport andcompounds we use that contribute toglobal warming. The biggest source isenergy use from our facilities (two thirds).We have a target to reduce globalwarming potential from energy per unitsales by 8% by 2005 (from a 2001baseline), and we are on track to meetthis target (see energy on page 66).

Compounds that contribute to globalwarming are used in the production ofmetered dose inhalers and in some ancil-lary equipment. They include CFCs andHCFCs (which also deplete the ozonelayer) and HFCs (which do not depletethe ozone layer). Emissions of ozonedepleting compounds are also reported in the ozone depletion section on page93. See product stewardship on page104 for more about the use of ozonedepleting compounds in our products.

Carbon dioxide and methane from waste treatment and fermentation alsocontribute to our global warming impact.We report our performance in the wastesection on page 81.

Note to Global Warming ChartsOur global warming impact from energy is calculat-ed using conversion factors from the WorldBusiness Council For Sustainable Development(WBCSD)/World Resources Initiative (WRI)Greenhouse Gas Protocol Initiative, September2001, its Stationary and Mobile CombustionWorkbooks, and the Intergovernmental Panel onClimate Change (1996).

We use conversion factors from the UK Departmentfor Environment Food and Rural Affairs to calculateCO2 from business air travel and air freight.

Energy Use from our Facilities includes all energyconsumed at GSK facilities in the form of electricityimported and steam imported and fuels burned infixed combustion equipment on site, includingemergency generators. Figures include fuels used togenerate steam and electricity on-site but not fuelfor on-site transport. The energy consumptionsection of this report includes a breakdown ofenergy data.

Transport includes business travel by air (includingtransatlantic flights between the US and UK, flightswithin the EU and US for routine business activities,and flights originating in the UK to large groupevents such as sales conventions), business travel byroad (including company-owned vehicle fleets,primarily our global sales fleet), and product freightby air. The increase in global warming potentialfrom transport since 2001 is mainly because wehave improved our reporting systems to morecomprehensively collect transport data. Forexample, the 2001 data did not include business airtravel within the EU and US and did not include UKand international sales fleet miles.

The data do not include employee travel to work.We do not collect data for other modes of businesstravel including rail and bus. We do not calculateCO2 emissions from road, rail or sea freight trans-port because our central data collection system isnot as robust in these areas and the impacts aresmall when compared to those of air freight trans-port. The transport section of this report includes abreakdown of transport data.

Energy and Climate Impact

62

Performance

Energy and Climate Impact (cont.)

63

Energy Transport Compound* Other**

(million kg CO2 equivalent )

2001 1,892 124 1,339 145

2002 1,839 185 968 170

2003 1,833 181 619 146

2004 1,750 210 566 123

Global Warming Potential

Global Warming Potential

* compound that contribute to global warming** includes waste treatment and fermentation

Global warming potential decreased by 4.7% since 2003.

Compounds that contribute to globalwarming are used in the production of metereddose inhalers and in some ancillary equipment.They include CFCs and HCFCs (which also depletethe ozone layer) and HFCs (which do not depletethe ozone layer). The ozone depletion section ofthis report contains a breakdown of ozone deplet-ing gases. The data does not include CFCs releasedfrom patient use of metered dose inhalers.

Other is CO2 equivalents from waste treatmentand fermentation.

Evidence continues to grow that theplanet is warming. Temperature recordsare considered sufficiently reliable todemonstrate that global temperatures arenow significantly warmer than the histor-ical average. Indicators such as tree rings,coral layering and glacier records providefurther evidence. If the current trendcontinues the United Nations expectsthat numerous plant and animal specieswill become extinct and that the frequen-cy of extreme weather events such assevere storms, floods and droughts willincrease.

Although our understanding is stillincomplete there is international consen-sus that action should be taken to tackleglobal warming and climate change. TheUnited Nations Framework Conventionon Climate Change entered into force in1994 and this Convention recognisesthat the climate system is a sharedresource, which can be affected by industrial and other emissions of carbondioxide and other heat-trapping gases.The Kyoto Protocol was adopted in 1997and established the mechanisms thatgovernments can use to limit or reducetheir greenhouse gas emissions. Russiawas the last country to ratify the treatyand it will enter into force 16 February2005. The protocol contains legallybinding emissions targets for 36 industri-alised countries. These countries mustreduce their collective emissions of sixkey greenhouse gases by at least 5% by2008 -2012 compared to 1990 levels.

Emission targets can be achieved by using:• international “emissions trading”

which enables industrialised countriesto buy and sell emission tradingcredits amongst themselves;

• clean Development Mechanism (CDM)projects that enable industrialisedcountries to finance emission reduc-tion projects in developing countriesin return for credits against theirKyoto targets;

• cooperation projects under the JointImplementation scheme which allowsdeveloped countries to fund emissionreduction projects in other developedcountries.

Although the US and Australia havestated that they will not ratify the protocol, ratification will provide GSK with opportunities to reduce itsemission of greenhouse gases usingthese mechanisms.

In advance of international agreement on Kyoto, the UK established its ownemissions trading scheme in 2002. A number of UK facilities joined thisscheme and have gained experience of carbon trading. To date more than50,000 carbon credits have been bankedto ensure compliance against futuremilestones under this scheme. TheEuropean Union (EU) has also takenunilateral action to control greenhousegases and an EU Emissions TradingScheme (ETS) will start in 2005. Thisscheme will cap the emission of carbondioxide from several of GSK’s Europeanfacilities. Based on 2003 data, more than50% of GSK’s global release of carbondioxide from non-transport sources willbe regulated under this scheme.

Energy and Climate Change

64

In 2004, GSK continued its efforts toreduce its emission of carbon dioxide.This work is coordinated by the GlobalUtilities Team, which consists of represen-tatives from all manufacturing divisionsand Research and Development. Thisgroup meets several times per year toshare best practice and to coordinateimprovement initiatives.

Example 1:GSK has partnered with the Carbon Trustin the UK to reduce energy consumption.Funding has been provided to help sitesin the UK produce publicity materials,undertake energy audits and to preparefor emissions trading. The Carbon Trust isan independent company, funded by theUK Government, which aims to move theUK towards a low carbon economy.

Example 2:In 2004, GSK installed its first windturbines at its Barnard Castle facility. Thetwo 250 KW turbines provide around10% of the site’s electricity and will avoidproduction of approximately 550 tonnesof carbon dioxide.

Example 3:GSK has signed on to the US Energy Star programme. This programme issponsored by the US EnvironmentalProtection Agency and the USDepartment of Energy and was devel-oped to help business and individualsprotect the environment through superiorenergy efficiency. By joining this schemeGSK is demonstrating its commitment toenergy efficiency and will be able toshare best practice with other like-minded organisations.

Energy and Climate Change (cont.)

65

Energy use from our facilities accountsfor 66% of GSK’s global warmingimpact. In 2004, we used 19 milliongigajoules of energy - equivalent to theenergy consumed in one year by approxi-mately 236,000 UK households. Thisproduced emissions of 1,750 million kgCO2. We bought 41% of our energy aselectricity and a small amount (1%) asmunicipal steam or hot water. The restwas generated from fuel combustion on-site.

In 2004, we developed a draft positionstatement on our future use of energy,which will be finalised in 2005. This wasin response to feedback showing thatenergy use is a key area of concernamong our stakeholders. The draftposition sets out a strategy for reducinggreenhouse gas emissions throughenergy efficiency, renewable energy andemissions trading. It also acknowledgesthat climate change may affect diseasepatterns and proposes that GSK shouldsupport research to help society plan forthe consequences of climate change.

In 2004, we continued to work on anumber of energy efficiency initiatives.For example, in the UK, GSK partneredwith the Carbon Trust to reduce energyconsumption through energy audits andraising employees’ awareness. In the USwe joined the Energy Star programmewhich encourages businesses to increasetheir energy efficiency and share bestpractice.

In the UK, we installed two wind turbinesat our Barnard Castle facility.

A number of our UK sites are participat-ing in the government’s emissions tradingscheme (ETS) - helping us to gain experi-ence in carbon trading. The UK ETS is avoluntary scheme which rewards compa-nies that improve energy efficiency withreductions in the tax they pay on energyconsumption. Sites that keep emissionsbelow an agreed target can bank thespare credits to help with compliance insubsequent years or can sell the creditsto other participants in the scheme. Bythe end of 2004, GSK had banked morethan 50,000 carbon credits which can beused to help us keep within targets in thefuture. We plan to participate in the EUEmissions Trading Scheme which beganat the start of 2005. We estimate thatmore than 50% of our carbon dioxideemissions from energy worldwide will beregulated under the EU Scheme.

Energy Consumption

66

Data Charts

• EnergyConsumption

• EnergyConsumption byBusiness

• Global WarmingPotential FromEnergy

• Global WarmingPotential FromEnergy byBusiness

Performance

Energy Consumption (cont.)

67

Energy Consumption (Excluding Transport)

SteamImported

ElectricityImported

Non-transportFuels

(million gigajoules)

2001 0.3 8.1 12.2

2002 0.1 8.2 11.7

2003 0.2 8.2 11.6

2004 0.2 7.8 11.0

Energy Consumption (Excluding Transport)

2001 2002 2003 2004 2005

Per Unit Sales as Percentage of 2001 Baseline

100% 94.1% 92.7% 93.1% 92.0%

Note to Energy ChartsEnergy consumption at our facilities is defined as all energy consumed in theform of electricity imported and steam imported and fuels burned in fixedcombustion equipment on site, including emergency generators. Figuresinclude fuels used to generate steam and electricity on-site but not fuel foron-site transport.

The global warming potential from energy use at our facilities is calculatedusing conversion factors from the World Business Council For SustainableDevelopment (WBCSD)/World Resources Initiative (WRI) Greenhouse GasProtocol Initiative, September 2001, its Stationary and Mobile CombustionWorkbooks, and the Intergovernmental Panel on Climate Change (1996).

The NOX and SO2 are calculated from the coal used at some GSK facilities,primarily in India for energy purposes, using conversion factors from theNational Atmospheric Emissions Inventory (UK national methodology).


Energy Consumption by Business (Excluding Transport)

2001 2002 2003 2004

(million gigajoules)

Energy Consumption by Business (Excluding Transport)

R&D 5.11 4.80 4.91 4.84

Biologicals 1.23 1.22 1.32 1.32

Consumer Healthcare 1.90 1.90 2.01 2.15

New Product and Global Supply 2.03 2.05 2.02 2.04

Regional Pharma Supply 2.03 1.95 1.75 1.77

Primary Supply & Antibiotics 7.93 7.24 6.85 5.77

Commercial 0.04 0.63 0.83 0.87

Other 0.26 0.21 0.23 0.23

68

Total energy consumptiondecreased by 4.5% since 2003(7.3% since 2001). Energyconsumption per unit salesincreased by 0.4% since 2003.However, it decreased by 6.9%since 2001, so we expect to meetour 2005 target of an 8% reduc-tion per unit sales since 2001.


69

Global Warming Potential from Energy (Excluding Transport)

SteamImported

Non-transportFuels Electricity

(million kg CO2 equivalent)

2001 37 748 1,107

2002 9 714 1,116

2003 11 705 1,117

2004 11 677 1,061

Global Warming Potential From Energy(Excluding Transport)

2001 2002 2003 2004 2005


100% 93.9% 92.8% 93.1% 92.0%


Global Warming Potential From Energy by Business (Excluding Transport)

2001 2002 2003 2004


Global Warming Potential from Energy by Business(Excluding Transport)

R&D 499.71 464.5 474.54 468.49

Biologicals 80.75 80.62 86.92 87.61





Commercial 5.99 66.52 88.08 90.16

Other 29.37 15.78 18.74 18.77

Total global warming potentialfrom energy use at our facilitiesdecreased by 4.5% since 2003(7.5% since 2001). Globalwarming potential per unit salesincreased by 0.3% since 2003 (adecrease of 6.9% since 2001) –meaning we are on track to meetour 2005 target of an 8% reduc-tion per unit sales since 2001.

Sulphur dioxide and nitrogenoxidesIn 2004, 109,905 kilograms ofNOx and 408,897 kilograms ofSO2 were emitted. These figureshave been calculated from the coal that is used at some GSKmanufacturing plants as an energy source.

70

We estimate that transport accounts for 7.9% of our total global warmingimpact. In 2004, we emitted approxi-mately 209 million kilograms of CO2

from transport.

Business air travel accounts for over half (54%) of our travel-related CO2

emissions. In 2004, employees travelled atotal of 771 million kilometres by plane -resulting in 114 million kg of CO2

emissions. This includes transatlanticflights between the US and UK, andflights within the EU and US for routinebusiness activities, as well as travel origi-nating in the UK related to large groupevents such as sales conventions.

In 2004, our global sales fleet (excludingthe UK) drove a total of 656 millionkilometres on business travel - resultingin 82 million kg of CO2.

In addition to business travel, we alsotransport products from our manufactur-ing plants to distributors. In 2004, GSKproducts were transported a total of 152million kilometres - the majority (81%) byair freight. We estimate that the airfreight resulted in 13.9 million kg of CO2.We do not calculate CO2 emissions fromroad, rail or sea freight transport becauseour central data collection system is notas robust in these areas and the impactsare small when compared to those of airfreight transport.

We have "green travel plans" at anumber of sites which encourageemployees to reduce the environmentalimpact of their travel to work. Forexample, at GSK House in Brentford, UK,privileged parking spaces are given tocar-sharers and drivers of fuel efficientcars; buses run to and from the localtrain station, while changing rooms andshowers are provided for cyclists as wellas discounts for bicycle equipment and repairs.

We encourage employees to use videoand teleconferencing where possible to reduce air travel. Virtual meetingsoftware is available to employees formaking presentations. Email and ourinternal messaging system are widelyused, although it is difficult to quantifythe impact of these on reducing business travel.

Transport

71

Data Charts

• Global WarmingPotential fromTransport

Performance

Transport (cont.)

72

Global Warming Potential from Transport

Business travel

by road

Businesstravelby air

Productfreightby air


2001 33.3 71.2 19.1

2002 81.0 91.5 12.8

2003 73.3 95.2 12.6

2004 82.0 114.0 13.9

Global Warming Potential from Transport

Total global warming potential from transport increased by 15.9% since 2003(69.8% since 2001). The increase since 2001 is mainly because we haveimproved our reporting systems to more comprehensively collect transportdata. For example, the 2001 data did not include business air travel within the EU and US and it did not include the UK and international sales fleet miles.We estimate we are still underestimating our global warming potential fromtransport because we do not have a robust system to collect the UK sales fleet travel or group air travel not originating in the UK.

Note to Transport ChartData for business air travel includes transatlantic flights between the US andUK, flights within the EU and US for routine business activities, and flightsoriginating in the UK to large group events such as sales conventions.

Data for business travel by road is for our global sales fleet except the UKsales fleet. We do not collect data for other modes of business travel including rail and bus.

The CO2 from air freight covers all global routes. We do not calculate CO2emissions from road, rail or sea freight transport because our central datacollection system is not as robust in these areas and the impacts are smallwhen compared to those of air freight transport.

We use conversion factors from the UK Department for Environment Foodand Rural Affairs to calculate CO2 from business air travel and air freight.

Water is a valuable natural resource thatneeds to be conserved and protectedfrom pollution. Water conservation isparticularly important in areas wherewater shortages are common.

GSK uses water in manufacturing (e.g.,for processes, products, cooling andcleaning) and for general site uses includ-ing food services and sanitation. Weoperate in several areas of the world thatare classified as water-stressed. We have47 sites in water stressed areas, of which31 are in areas classified as highlystressed by the World Resources Institute.

In 2004, we used 20.5 million cubicmetres of water - a decrease of 10.9%since 2003 (23.8% since 2001). Waterconsumption per unit sales decreased by6.3% since 2003 (23.3% since 2001) -meaning we have exceeded our 2005target of a 10% reduction per unit salessince 2001.

In 2004, we generated 13.9 million cubicmetres of wastewater. 15% of this wasreused, recovered or recycled.

We assess the quality of our wastewaterby measuring the chemical oxygendemand (COD) - the oxygen required tochemically oxidise organic and inorganiccompounds present in the water. TotalCOD decreased by 15.0% since 2003(24.5% since 2001). COD per unit salesdecreased by 10.8% since 2003 (24.2%since 2001) - meaning we are on track tomeet our 2005 target of a 30% reduc-tion per unit sales since 2001.

In 2004, we used 20.5 million cubicmetres of water - equivalent to the waterused in one year by approximately80,000 UK households. This was sourcedfrom municipal water supplies (60.5%),wells/boreholes (39.0%), and othersources (0.5%).

All five of our sites in India use processedwastewater for watering plants andtrees, which help provide shade, improvethe appearance of the site, and also asource of food for employees. They donot discharge any wastewater to waterbodies or to municipal sewers. Our site in Xochimilco, Mexico uses processedwastewater for watering gardens aroundthe site, washing vehicles, windows andother uses not requiring drinking water.Our sites in Turkey and the Philippinesalso reuse all wastewater.

Water Water Use

73

Data Charts

• WaterConsumption

• WaterConsumption byBusiness(ExcludingTransport)

Performance

Water Use (cont.)

74

Water Consumption

Other* Municipalsources

Wells/boreholes

(million cubic metres)

2001 0.0 15.2 11.6

2002 0.0 14.3 10.0

2003 0.1 13.0 9.9

2004 0.1 12.4 8.0

Water Consumption

2001 2002 2003 2004 2005


100% 87.4% 81.9% 76.7% 90.0%

* mainly wastewater from external industrial sources

Note to Water Use ChartsWater use includes water sourced from wells/boreholes, municipal and othersources (mainly wastewater from external industrial sources).

The data include water used in manufacturing processes and for general sitesuses, as well as water incorporated into products.

Water Use (cont.)

Water Consumption by Business

2001 2002 2003 2004


Water Consumption by Business

R&D 3.14 2.99 2.74 2.66

Biologicals 1.15 1.20 1.26 1.26





Commercial 0.01 0.46 0.39 0.24

Other 0.94 0.83 0.84 0.92

Total water consumptiondecreased by 10.9% since 2003(23.8% since 2001). Waterconsumption per unit salesdecreased by 6.3% since 2003(23.3% since 2001) - meaning wehave exceeded our 2005 target ofa 10% reduction per unit salessince 2001.

75

In 2004, we generated 13.9 million cubicmetres of wastewater from our manufac-turing processes and various site operations.

Fifteen percent (15%) of total waste-water was reused, recovered or recycled.All of our five sites in India have imple-mented “zero wastewater” dischargeprogrammes - reusing and recycling allwastewater. Another three sites (inMexico, the Philippines and Turkey) also reuse all wastewater.

We assess the quality of our wastewaterby measuring the chemical oxygendemand (COD) - the oxygen required tochemically oxidise organic and inorganiccompounds present in the water.

One site in Brasov, Romania was fined24,333,400 ROL (£409) by the localwater company for exceeding the COD limit.

Wastewater

76

Data Charts

• WastewaterVolume

• WastewaterVolume byBusiness

• WastewaterChemical OxygenDemand

• WastewaterChemical OxygenDemand byBusiness

Performance

Wastewater (cont.)

77

Wastewater Volume

Directto sea

Direct to estuary

Municipal sewer Other*


2001 5.4 2.1 10.0 3.5

2002 3.8 2.4 8.1 2.0

2003 4.3 1.8 7.9 2.2

2004 4.2 1.1 7.2 2.4

Wastewater Volume

* 2.1 million cubic metres to river

Note to Wastewater and COD ChartsWastewater volume includes all manufacturing and site process wastewateras well as sanitary and food service wastewater.

Wastewater quality is measured by Chemical Oxygen Demand (COD) which is a measure of the oxygen required to chemically oxidise organic andinorganic compounds present in the water.

The COD is measured when wastewater leaves our sites, following any on-site treatment.

In 2002, we began to ask our sites to submit COD data following municipaltreatment. This takes into account final treatment occurring at municipal orpublicly-owned wastewater treatment works and therefore gives a betterindication of the impact of our operations on the final receiving waterways.However, many of our sites have not submitted this data which means thatthe 2004 data still primarily reflects the COD after only onsite treatment. Wewill revisit this parameter and its scope as we develop our new EHS metricsand targets in 2005.

Wastewater (cont.)

Wastewater Volume by Business

2001 2002 2003 2004


Wastewater Volume by Business

R&D 3.77 2.15 2.83 2.59

Biologicals 1.12 1.08 1.06 1.17


New Product and Global Supply .95 0.96 0.85 0.85



Commercial 0.00 0.54 0.16 0.30

Other 0.57 0.29 0.32 0.00

Total wastewater volumedecreased by 9.8% since 2003(25.9% since 2001).

78

Wastewater (cont.)

79

Wastewater Chemical Oxygen Demand

Directto sea

Direct to estuary

Municipal sewer Other*

(million kg)

2001 13.0 8.1 6.1 0.6

2002 10.6 5.2 6.9 2.7

2003 11.1 4.7 7.3 1.5

2004 11.1 3.0 6.2 0.6

Wastewater Chemical Oxygen Demand

2001 2002 2003 2004 2005


100% 88.2% 85.0% 75.8% 70.0%

* includes reused/recovered/recycled, on-site irrigation and incineration

Wastewater (cont.)

Wastewater Chemical Oxygen Demand by Business

2001 2002 2003 2004

(million kg)

Wastewater Chemical Oxygen Demand by Business

R&D 0.35 0.18 0.39 0.26

Biologicals 0.25 0.35 0.37 0.35





Commercial 0.00 0.01 0.02 0.01

Other 1.32 1.18 1.18 0.47

Total COD decreased by 15.0%since 2003 (24.5% since 2001).Most of the decrease in 2004 wasbecause our site at Ulverston, UK,outsourced a fermentationprocess. COD per unit salesdecreased by 10.8% since 2003(24.2% since 2001) - meaning weare on track to meet our 2005target of a 30% reduction per unitsales since 2001.

80

Our waste includes hazardous waste(mostly waste solvents) and non-hazardous waste (mostly general sitewaste). We report non-routine waste(mostly construction and demolitionwaste) separately because this fluctuatesdepending on building works andremediation projects.

Most of the active ingredients in ourpharmaceutical products are manufac-tured using synthetic chemistry processes.This means that a significant proportionof our waste contains solvents andchemicals used in these processes and is classified as hazardous.

In 2004, we disposed of 43.1 million kgof non-hazardous waste and 73.7 millionkg of hazardous waste.

Non-hazardous waste disposed per unitsales increased by 2.8% since 2003 (butdecreased by 18.8% since 2001) -meaning we have exceeded our 2005target of an 8% reduction per unit salessince 2001.

Hazardous waste disposed per unit salesincreased by 27.5% since 2003 (17.3%since 2001) - meaning we are not ontrack to meet our 2005 target of a 15%reduction per unit sales since 2001. Thisis due to a combination of factors whichare described in the hazardous wastesection.

Many of our sites have introduced wasteminimisation and recycling initiatives. In2004, we recycled 239.2 million kg ofwaste (67.2% of the total waste generat-ed). The proportion of waste recycleddecreased by 11.1% since 2003 (11.5%since 2001) - meaning we are not ontrack to meet our 2005 target of a 10%

increase in the proportion of wasterecycled since 2001. Production changesduring 2004 led to a greater proportionof solvent waste being blended as a fuelor incinerated and less recycled.

In 2004, a large number of projects related to waste issues – 20 in total –were submitted for the GSK CEO EHSExcellence Awards. Our site in Bogotá,Colombia, was awarded 1st place in theenvironment category of the awards forits pharmaceutical waste bioremediationproject (see case study on next page).

Note to Hazardous Waste ChartsAlthough the external definition of what constitutes a waste varies, for GSK reportingpurposes a material is considered a waste if it is no longer fit for its originally intended purpose.

Hazardous waste disposed includes disposal tolandfill and incineration either on or off GSKproperty. Incineration with energy recovery includesprocesses that result in beneficial energy or resource recovery and includes a small amount ofcomposting. Incineration without energy recoveryincludes processes that do not result in beneficialenergy or resource recovery. Hazardous wastedisposed does NOT include recycling on-site or off-site or non-routine waste.

For consistent reporting, GSK considers a waste to be hazardous if it exhibits any of a number ofproperties as defined by the Basel Convention in1989 of the United Nations EnvironmentProgramme (UNEP). Included in these properties are flammability, explosivity, water or air reactivity,corrosivity, oxidising potential, acute or chronictoxicity, ecotoxicity or infection. In addition, because of their nature and potential impact onresearch and development activities, radioactivewastes are defined as hazardous. Bioengineeredand biohazardous waste is included in hazardouswaste. A waste is considered to be non-hazardousif it does not exhibit any of the hazardous proper-ties noted above.

Waste

81


Waste (cont.)

82

Reed beds used to treat pharmaceutical waste in Colombia

Our consumer healthcare site inBogotá, Colombia, has developed asystem to reduce the environmentalimpact of disposing of unused liquidpharmaceutical products, includingproduct returns or rejects.

The liquid waste is treated in reedbeds. Although reed beds arebecoming increasingly popular totreat domestic and industrial waste-water, the Colombia team arepioneers in using them to treatpharmaceutical waste.

Reeds (usually phragmites australis)planted in specially designed soilbeds provide an ideal environmentfor bacteria and fungi to breakdown hazardous chemicals naturallyinto harmless components. Thereeds themselves absorb somechemicals in the waste as nutrients.In our initial trial, treating a mixtureof waste syrup and used oil, levels ofchemicals in the residual water fromthe reed beds fell below legal limitsafter 35 days.

The system replaces high tempera-ture incineration, which is energyintensive and does not dispose ofcertain wastes such as syrups effec-tively. Using reed beds has reducedthe cost of final disposal perkilogram of product by 60%.

Building our own reed bed treatmentplant at the Bogotá site was not feasi-ble because there was not enoughspace, so the team promoted the ideaof a joint initiative with other compa-nies. In June 2003, the waste treatmentcompany Transform Ecoskandia Ltdaand other financial partners foundedTransform Biolodos Ltda to build thefirst large reed bed plant in Colombiafor industrial and public use.

The Bogotá site won first place in theenvironment category of our internalawards scheme - the Chief ExecutiveOfficer’s Environment, Health andSafety Excellence Awards. The siteclosed in 2004, but the reed bed treat-ment plant is now used by severalother major companies.

Developing Environmentally Friendly Ways of Disposing of Unused Pharmaceutical Products

In 2004, we disposed of 73.7 million kgof hazardous waste (excluding demolitionand construction waste). This is mostlysolvents (82.6%), the rest being generalsite waste (15.3%) and chemical, biologi-cal or radioactive waste (2.0%).

Performance

In 2004, 50.2% of hazardous wastedisposed was incinerated for energyrecovery, 47.5% was incinerated withoutenergy recovery. The remaining wastewas disposed to licensed landfill sites.

Hazardous Waste

Data Charts

• Hazardous WasteDisposed

• Hazardous WasteSource

• Hazardous WasteDisposed byBusiness

2001 2002 2003 2004 2005


100% 94.5% 92.0% 117.3% 85.0%

83

Hazardous Waste Disposed

Incineratedwithout energy

recovery

Incineratedwith energy

recoveryLandfill

(million kg)

2001 31.2 28.7 3.4

2002 30.7 28.4 2.8

2003 32.1 26.8 2.2

2004 35.0 37.0 1.9

Hazardous Waste Disposed

Hazardous Waste (cont.)

84

Hazardous Waste Source

Solvent waste Site waste Others*

(million kg)

2001 50.5 12.7 0.0

2002 50.7 10.3 0.8

2003 48.7 10.5 1.8

2004 60.9 11.3 1.5

Hazardous Waste Source

* includes chemical/biological/radioactive/pharmaceutical waste

Hazardous Waste (cont.)

Hazardous Waste Disposed by Business

2001 2002 2003 2004

(million kg)

Hazardous Waste Disposed by Business

R&D 1.98 2.78 3.29 3.30

Biologicals 2.22 2.53 2.59 3.09





Commercial 0.02 0.14 0.17 0.18

Other 0.44 0.07 0.04 0.04

Total hazardous waste disposedincreased by 21.0% since 2003(16.6% since 2001). Hazardouswaste disposed per unit salesincreased by 27.5% since 2003(17.3% since 2001) - meaning weare not on track to meet our 2005target of a 15% reduction per unitsales since 2001.

Our previous trend of reducinghazardous waste per unit saleswas reversed in 2004 by a combi-nation of factors. GSK’s hazardouswaste is mostly solvents and oneplant scheduled for closure had todispose of redundant solventstocks. This had a one off impacton our data. In addition, changesto production at other plantsincluded bringing in-houseprocesses that were previouslyundertaken by contract manufac-turers. Our engineers will beassessing how to optimise the newprocesses to reduce solvent useand increase recycling.

85

In 2004, we disposed of 43.1 million kgof non-hazardous waste (excluding non-routine waste). This is equivalent to thewaste produced by approximately 34,800UK households. Most non-hazardous

Performance

waste is general site waste such as officewaste paper, kitchen waste and non-hazardous substances used in manufac-turing. Many sites continue to look forways to reduce waste and have under-taken waste management reviews.

Non-hazardous Waste

86

Data Charts

• Non-hazardousWaste Disposed

• Non-hazardousSource

• Non-hazardousWaste Disposedby Business

2001 2002 2003 2004 2005


100% 89.8% 79.0% 81.2% 92.0%

Non-hazardous Waste Disposed

Incineratedwithout energy

recovery


recoveryLandfill

(million kg)

2001 12.1 5.8 35.3

2002 9.4 8.4 31.8

2003 6.5 8.3 29.3

2004 8.8 7.7 26.6

Non-hazardous Waste Disposed

Note to Non-hazardous Waste ChartsAlthough the external definition of what constitutes a waste varies, for GSKreporting purposes a material is considered a waste if it is no longer fit for itsoriginally intended purpose.

Non-hazardous waste disposal includes disposal to landfill and incinerationeither on or off GSK property. Incineration with energy recovery includesprocesses that result in beneficial energy or resource recovery and includes asmall amount of composting. Incineration without energy recovery includesprocesses that do not result in beneficial energy or resource recovery. Non-hazardous waste disposed does NOT include recycling on-site or off-site ornon-routine waste.

Biological waste rendered non-hazardous after treatment is considered a non-hazardous waste.

Non-hazardous Waste (cont.)

87

Non-hazardous Waste Source

Site waste Biological

(million kg)

2001 53.4 0.0

2002 48.0 1.6

2003 42.9 1.2

2004 42.0 1.1

Non-hazardous Waste Source

Non-hazardous Waste (cont.)

Non-hazardous Waste Disposed by Business

2001 2002 2003 2004

(million kg)

Non-hazardous Waste Disposed by Business

R&D 9.99 8.67 6.63 5.83

Biologicals 2.79 3.15 2.73 1.96





Commercial 0.91 2.83 3.00 4.36

Other 4.32 1.54 1.11 0.87

Total non-hazardous wastedisposed decreased by 2.3% since2003 (19.3% since 2001). Non-hazardous waste disposed per unitsales increased by 2.8% since2003 (but decreased by 18.8%since 2001) - meaning we haveexceeded our 2005 target of an8% reduction per unit sales since 2001.

88

In 2004, we recycled 239.2 million kg ofwaste (67% of the 356 million kg ofwaste generated).

Over 77% of the total waste recycledwas hazardous waste, primarily solvents.

Performance

New recycling programmes have led tosignificant reductions in waste at severalsites. For example, in Cidra, Puerto Rico,recycling a range of materials hasreduced non-hazardous waste disposedto landfill by 30-40% per year. In Clifton,New Jersey, US, recycling of plasticpackaging materials has saved over 70 metric tonnes of waste per year.

Recycling

89

Data Charts

• Proportion ofTotal WasteRecycled

• Total WasteRecycled

• Proportion ofTotal WasteRecycled byBusiness

2001 2002 2003 2004 2005

Percentage of 2001 Baseline

100% 99.3% 99.6% 88.5% 110%

Proportion of Total Waste Recycled

(%)

2001 75.9

2002 75.4

2003 75.6

2004 67.2

Proportion of Total Waste Recycled

Note to Recycling ChartsWaste recycled includes hazardous and non-hazardous waste (not non-routine waste) that has been reused, recovered or recycled, on-site and off-site. It includes in-process reuse of solvents.

Recycling (cont.)

90

Total Waste Recycled

Hazardous Non-hazardous

(million kg)

2001 288.5 79.5

2002 255.9 85.7

2003 235.1 90.7

2004 183.3 55.9

Total Waste Recycled

Recycling (cont.)

Proportion of Total Waste Recycled by Business

2001 2002 2003 2004

(%)

Proportion of Total Waste Recycled by Business

R&D 20.73 17.38 23.86 25.73

Biologicals 14.46 13.40 19.01 22.94





Commercial 32.60 44.53 44.62 34.80

Other 64.17 83.05 89.46 90.09

Total waste recycled decreased by 26.6% since 2003 (35.0%since 2001).

The proportion of waste recycleddecreased by 11.1% since 2003(11.5% since 2001) - meaning we are not on track to meet our2005 target of a 10% increase inthe proportion of waste recycledsince 2001.

Production changes during 2004led to a greater proportion ofsolvent waste being blended as a fuel or incinerated and less recycled.

91

Non-routine waste is primarily demolitionand construction waste and includeshazardous and non-hazardous wastefrom site demolition and constructionactivities and from small on-site remedia-tion projects. In 2004, we disposed (vialandfill or incineration) of 6.6 million kgof non-routine waste, and recycled 6.8 million kg.

Performance

Non-routine Waste

92

Data Charts

• Non-routineWaste

Non-routine Waste

Incineratedwithoutenergy

recovery


recoveryLandfill Recycled

(million kg)

2001 0.2 1.6 21.2 2.3

2002 0.2 0.0 15.7 14.2

2003 1.9 0.2 21.5 2.6

2004 0.2 0.1 6.3 6.8

Non-routine Waste

Total non-routine waste disposed decreased by 48.9% since 2003 (47.0%since 2001). The amount of waste fluctuates each year depending on plantupgrades and site closures.

Note to Non-Routine Waste Charts Although the definition of what constitutes waste varies, for GSK reportingpurposes a material is considered a waste if it is no longer fit for its originallyintended purpose.

Non-routine related waste disposal includes disposal to landfill and incinera-tion either on or off GSK property. Incineration with energy recovery includesprocesses that result in beneficial energy or resource recovery and includes asmall amount of composting. Incineration without energy recovery includesprocesses that do not result in beneficial energy or resource recovery. Non-routine waste disposed does NOT include waste recycled on-site and off-site.

The ozone layer is essential to humansurvival because it filters out harmfulultra-violet (UV) rays from the sun. Ozonedepleting substances (ODSs) includechlorofluorocarbons (CFCs), hydrochloro-fluorocarbons (HCFCs) and halons.

CFCs are the main ODS we use - as thepropellant gas in metered dose inhalers(MDI) for asthma sufferers. The CFC isreleased when patients use the inhaler.

In 2004, 464 thousand kilograms of CFCpropellant were released when patientsused our products in the EU and US. Amuch smaller amount of CFCs - 59thousand kilograms - were releasedduring worldwide production.Information on CFC releases is notcompiled outside the US and UK wherethis is not required by regulation. Wenow offer a selection of alternatives toODS-containing inhalers in mostcountries and plan to eliminate the useof ODSs from our product portfolio by2010. See metered dose inhalers on page 111.

Ozone depletion potential from produc-tion per unit sales decreased by 67.5%since 2001—meaning we have exceededour 2005 target of a 50% reduction perunit sales since 2001.

We also use ODSs in some coolingsystems and for other ancillary uses atGSK facilities. We have switched to usinghydrofluorocarbons (HFCs) in somecooling systems. HFCs do not deplete theozone layer but do contribute to globalwarming. Ozone depletion potential fromancillary use per unit sales decreased by60.5% since 2001, but the current trendindicates that we may miss our 2005target to eliminate these emissions. Weplan to establish a team in 2005 to devel-op a business strategy to eliminate ancil-lary emissions of ODSs.

Ozone Depletion

93

A small proportion of the CFC used tomanufacture Metered Dose Inhalers(MDIs) is released during the manufactur-ing process. We are working to eliminateuse of ozone depleting substances (ODSs)in MDIs by switching to HFC and drypowder inhalers (see metered doseinhalers on page 111).

Performance

Ozone Depleting Substances in Manufacturing

94

Data Charts

• Ozone DepletionPotential fromProduction

• Ozone DepletionPotential fromProduction byBusiness

2001 2002 2003 2004 2005


100% 63.8% 37.4% 32.5% 50.0%

Ozone Depletion Potential from Production Use

(million kg CFC-11 equivalent)

2001 0.183

2002 0.121

2003 0.072

2004 0.059

Ozone Depletion Potentialfrom Production Use

Production

Note to Ozone Depletion Potential ChartsWe report ozone depletion potential in CFC-11 equivalents as defined by

the United Nations Environment Programme (UNEP) Ozone Secretariat (www.ghgprotocol.org and www.ipcc.ch)

The data only include EU and US.

Ozone Depleting Substances in Manufacturing (cont.)

95

Substance Kg Factor Ozone Depletion Potential

Ozone Depleting Substances Released from Production Activities

CFC11/R11 12,634 1.0 12,634

CFC12/R12 46,304 1.0 46,304

1,1,1 TRICHLOROETHANE 265 0.1 27

METHYL BROMIDE 590 0.6 354

Ozone Depleting Substances in Manufacturing (cont.)

Ozone Depletion Potential from Production by Business

2001 2002 2003 2004

(thousand kg CFC-11 equivalent)

Ozone Depleting Substances Released From Production Activities by Business

R&D 0.00 0.00 0.00 0.00

Biologicals 0.00 0.00 0.00 0.00





Commercial 0.00 0.00 0.00 0.00

Other 1.09 0.00 0.00 0.00

Total ozone depletion potentialfrom production decreased by18.1% since 2003 (67.8% since2001). Ozone depletion potentialfrom production per unit salesdecreased by 13.1% since 2003(67.5% since 2001) - meaning wehave exceeded our 2005 target ofa 50% reduction per unit salessince 2001.

As production of CFC-containingMDIs decreases, the amount ofCFC lost during production alsodeclines. We will no longermanufacture CFC-containing MDIsin the US after 2005 and in Europeafter 2006. We will continue tomanufacture them in Bangladesh,China, India and Pakistan until theend of 2009.

96

We use ozone depleting substances(ODSs) primarily in cooling systems. Wehave switched to using hydrofluorocar-bons (HFCs) in some ancillary equipment.HFCs do not deplete the ozone layer butdo contribute to global warming.

Performance

ODSs - mainly HCFCs - are sealed inside cooling systems and are onlyreleased in the event of a leak or during maintenance.

We plan to establish a team in 2005 todevelop a business strategy to eliminateancillary emissions of ODSs. This willclosely monitor equipment and put inplace recommendations on alternativerefrigerants and new equipment.

Ozone Depleting Substances in Ancillary Equipment

97

Data Charts

• Ozone DepletionPotential fromAncillary Use

• Ozone DepletionPotential fromAncillary Use byBusiness

2001 2002 2003 2004 2005


100% 103.8% 36.3% 39.5% 0%

Ozone Depletion Potential from Ancillary Use

(million kg CFC-11 equivalent)

2001 0.0059

2002 0.0064

2003 0.0023

2004 0.0023

Ozone Depletion Potentialfrom Ancillary Use

Ancillary

Note to Ozone Depletion Potential ChartsWe report ozone depletion potential in CFC-11 equivalents as defined by the United Nations Environment Programme (UNEP) Ozone Secretariat(www.ghgprotocol.org and www.ipcc.ch)


Ozone Depleting Substances in Ancillary Equipment (cont.)

98

Substance Kg Factor Ozone Depletion Potential

Ozone Depleting Substances Released from Ancillary Activities

CFC11/R11 934 1.000 934

CFC12/R12 314 1.000 314

HFC22/R22 16,355 0.055 900

HFC123/R123 239 0.020 5

R403a 56 0.055 3

R408a/FX10 351 0.055 19

R409a/FX56 262 0.048 13

R502 136 1.000 136

R503 1 1.000 1

Ozone Depleting Substances in Ancillary Equipment (cont.)

99

Ozone Depletion Potential from Ancillary Use by Business

2001 2002 2003 2004

(thousand kg CFC-11 equivalent)

Ozone Depleting Substances Released from Ancillary Use by Business

R&D 0.59 0.15 0.22 0.25

Biologicals 0.01 0.04 0.03 0.04





Commercial 0.00 0.04 0.01 0.09

Other 0.03 0.01 0.01 0.02

Total ozone depletion potentialfrom ancillary use did not changefrom 2003 (but decreased by61.0% since 2001). Ozone deple-tion potential from ancillary useper unit sales increased by 8.8%since 2003 (but decreased by60.5% since 2001).

The current trend indicates that wemay miss our 2005 target to elimi-nate ozone depleting emissionsfrom ancillary use. It has notproved possible to eliminate allemissions during servicing andmaintenance of cooling equip-ment. This means that we need toupgrade or replace equipment touse non-ozone depleting gases.New cooling systems are beingintroduced - which don’t useozone depleting gases. However,we will not have upgraded orreplaced all equipment by 2005.

Note to VOC ChartsEmissions of volatile organic compounds(VOCs) are measured at GSK manufactur-ing operations and research and develop-ment facilities, including fugitive sourcessuch as evaporation and leaks.

VOCs react with nitrogen oxides in thepresence of sunlight, creating ozone inthe lower atmosphere. This results insmog, which is a factor in human respi-ratory illness. We report photochemicalozone creation potential (POCP) in ethyl-ene equivalents. Conversion to ethylene equivalents is based on the EuropeanChemical Industry Council (CEFIC) “Responsible Care HSE ReportingGuidelines” for VOCs (1998).

We use volatile organic compounds(VOCs) mainly as solvents in our primarymanufacturing operations. In 2004, wereleased 5.45 million kilograms of VOCsto the atmosphere.

Performance

VOCs react with nitrogen oxides in thepresence of sunlight, creating ozone inthe lower atmosphere. This results insmog, which is a factor in human respiratory illness. Workplace exposure tocertain VOCs can also pose a health risk.

Volatile Organic Compounds

100

Data Charts

• Volatile OrganicCompoundsEmitted to Air

• Volatile OrganicCompoundsEmitted to Air byBusiness

• PhotochemicalOzone CreationPotential

2001 2002 2003 2004 2005


100% 94.1% 91.5% 80.4% 70.0%

(million kg)

2001 6.81

2002 6.64

2003 6.52

2004 5.45

Volatile Organic Compounds Emitted to Air

VOC

Volatile Organic Compounds Emitted to Air

Volatile Organic Compounds (cont.)

101

Volatile Organic Compounds Emitted to Air by Business

2001 2002 2003 2004

(million kg)

Volatile Organic Compounds Emitted to Air by Business

R&D 0.03 0.04 0.04 0.05

Biologicals 0.02 0.00 0.00 0.00





Commercial 0.00 0.01 0.00 0.00

Other 0.29 0.00 0.00 0.00


102

(million kg ethylene equivalent)

2001 2.2

2002 2.2

2003 2.2

2004 1.8

Photochemical OzoneCreation Potential

POCP

Photochemical Ozone Creation Potential

Total VOCs emitted to air decreased by16.4% since 2003 (20.0% since 2001).VOCs emitted to air per unit sales decreasedby 12.1% since 2003 (19.6% since 2001) -meaning we are on track to meet our 2005target of a 30% reduction per unit salessince 2001.

Photochemical ozone creation potentialdecreased by 19.3% since 2003 (17.8%since 2001).


103

We use a wide-range of solvents(volatile organic compounds) in themanufacture of Epivir (an antiretroviral),Zinacef and Zinnat (cephalosporinantibiotics) at our site in Ulverston, UK.

We endeavour to use these solventsin a sustainable manner and over20,000 tonnes of solvent are recov-ered each year at the Ulverston-sitefor re-use in the manufacturingprocesses.

We have been working for anumber of years to reduce releasesof all solvents, including dichloro-methane, at the site. In February2003, the site produced a SolventManagement Plan and SubstitutionPlan - in line with the requirementsof new EU regulations. These wereupdated in July 2004.

The site is authorised under the UKEnvironmental Protection Act 1990to release a maximum of 1,000tonnes of dichloromethane to air. In2004, emissions to air totalled 269tonnes - well below the limit and areduction of 33% compared with2003. Over the same period releasesof other VOCs reduced by 10% and

have declined by 30% over the last fiveyears. Our target is to reduce emissionsof dichloromethane to air to less than190 tonnes in 2005 and 80 tonnes in 2006.

In 2004, we also reduced the amountof dichloromethane discharged intowater by 80% compared with 2003. We aim to reduce this amount tobelow one tonne in 2005 and below0.1 tonnes in 2006.

Dichloromethane continues to be usedin enclosed equipment and regularmonitoring of employees ensures theirexposure levels remain low. The levelsof all solvents, including dichloro-methane, found around the edge ofthe site are well below guide limits setby the Environment Agency forEngland and Wales.

Reducing Solvent Emissions at Ulverston, UK

As well as managing environmentalissues at our factories, we look morewidely at the life-cycle of our products -from product design to use and eventualdisposal. We call this product stewardship.

This section focuses on:• product design - how we are incorpo-

rating environmental considerationsinto the design of new products;

• pharmaceuticals in the environment -what we are doing to understand andminimise the impact of pharmaceuti-cals released to the environment(following use);

• CFCs in metered dose inhalers - howwe are progressing against our targetto eliminate the use of CFCs (anozone depleting gas) from ourproduct portfolio by 2010.

There are a number of other environmen-tal issues associated with our products,including the use of genetically modifiedorganisms and the use of naturalresources which may impact on biodiversity. See more on our approach to biodiversity on page 115 and geneticallymodified organisms on page 117. Theresearch and development section of thisreport on our website.

We are working to incorporate environ-mental considerations into the design ofnew products. This helps us to reducewaste and improve process efficiency.

Our eco-design toolkit alerts us to poten-tial EHS issues early in the developmentprocess. It includes a green chemistryguide, materials guide, green packagingguide and FLASC (Fast life-cycle assess-ment for synthetic chemistry). It is avail-able on our intranet.

In 2004, we made further progress inintegrating our EHS Milestone AlignedProcess (EHS MAP) into our productdevelopment and supply processes,including our “design for manufacturing”initiative. Approximately 650 employeesin R&D and manufacturing attendedtraining sessions on the EHS Map Processduring the year. See business processeson page 20 for more about EHS Map .

See more on our approach to product design on page 105.

Product Stewardship Product Design

104

Designing Products forEnvironmental Sustainability GlaxoSmithKline aspires to be a sustain-able company but recognises that it willtake many years of hard work to developand fully integrate design for sustain-ability principles into the business and toeffect the necessary change in culture tomove from aspiration to reality. The initialfocus will be to align environmentalaspects of sustainability with the deliveryof new products.

An example of the environmental focus is the GlaxoSmithKline eco-design toolkit,which was developed to support newproduct development and product transferor redesign of processes. The eco-designtoolkit can help us bring products tomarket faster as scientists and engineersbegin to apply the eco-design principlesand practices to design-out potentialproblems early in development. It alsowill help us bring products to marketmore cost effectively, because eco-designprinciples and practices will enable us touse less material and energy to make ourproducts. It will also enable research anddevelopment to address potentialenvironment, health and safety (EHS)issues during process development beforea process is handed over to manufactur-ing where the cost of addressing process-related EHS issues may be considerablyhigher.

The toolkit is currently composed of fourmodules. Each of these was significantlyrevised during 2003 to enhance usabilityand to promote a standard look and feel.Each module was designed to ensurethat all EHS impacts of materials, process-es and services are considered, from themanufacture of the raw materials

through to the ultimate fate of productsand wastes in the environment. Themodules currently available include thefollowing:

Green Chemistry GuideGreen Chemistry Guide offers guidanceto GlaxoSmithKline scientists andengineers on how to apply GreenChemistry concepts to enable moreefficient use of resources, reduce environ-ment, health and safety impacts andminimise costs. It includes:• a ranking and summary of the most

used chemistries and ‘best-in-class’examples from well-developedGlaxoSmithKline processes;

• a ranking and review of issuesencountered during process designand development;

• a ranking and summary of commontechnology alternatives for chemicalprocessing;

• guidance on materials, process alter-natives, synthetic route strategies andmetrics for evaluating chemistries,technologies and processes.

Materials GuidesSolvent Selection contains information on a wide range of solvents used withinGlaxoSmithKline operations and alsoidentifies solvents that should be avoided. It:• added a new section in 2003 to

address recent legislative initiativesthat affect future solvent use in theEuropean Union;

• added a new section on the life-cycleimpacts associated with solventmanufacture;

Product Design (cont.)

105

• compares and ranks 45 solventsaccording to environmental wasteprofile, environmental impact, safetyprofile and health impact;

• compares International Conference onHarmonisation (ICH) guidelines onallowable concentrations of solventsin active pharmaceutical ingredientsagainst EHS characteristics of solvents;

• provides information on boiling pointand azeotrope formation to assist inthe selection of separable co-solvents;

• provides detailed information onphysical properties, safety, health and environmental issues.

Base Selection ranks 42 chemical basesaccording to their environmental wasteprofiles, environmental impacts, safetyprofiles and health impacts. It alsoprovides detailed information on each base.

Green Packaging Guide provides apackaging assessment tool, guidance and a business process for selection ofpackaging for the Pharmaceuticals andConsumer Healthcare businesses. In early2003, the extensively revised site intro-duced a new interactive section of theGreen Packaging Guide known as WRAP- Wizard for the Rapid Assessment ofPackaging. WRAP is a tool and processthat allows packaging designers andmanagers to rapidly assess the environ-mental impacts of existing and newpackaging designs. WRAP represents asignificant enhancement and includes:

• A facility for benchmarking new and existing packaging designs.Benchmarking is undertaken againstGlaxoSmithKline’s existing productportfolio split into the different

product types. The method usedconsiders five metrics that cover the product life-cycle: • Manufacture of packaging• Mass of packaging• Biodegradability• PVC content• Resource depletion

• A best-in-class example in eachpackaging category

• Green packaging guides for nutritionalhealthcare products and consumerhealthcare products

Using a scoring mechanism, WRAPgenerates a simple colour-coded reportthat clearly shows if the packagingassociated with a product is better orworse than the appropriate benchmark.WRAP also allows more detailed analysisof the underlying issues around thepackaging and enables users to easilylook at the effect of alternative packagingthrough scenario analysis. The bench-marks will be updated and expanded as more data on packaging forGlaxoSmithKline products are collected.

FLASC is the newest component of theeco-design toolkit. FLASC (Fast Life-cycleAssessment for Synthetic Chemistry) waslaunched in 2003. FLASC is a web-basedapplication that allows bench chemists toperform a streamlined life-cycle evalua-tion of the environmental consequencesof new or existing processes based uponthe input materials used. FLASC is aprocess and tool that will enable anassessment of eight different environ-mental impact categories associated withmaterials used in a synthetic route ormanufacturing process:


106

• Mass of materials used• Energy required• Photochemical Ozone Creation

Potential (POCP)• Greenhouse gas equivalents• Acidification• Eutrophication• Total organic carbon generated

before any waste treatments• Oil and natural gas depletion for

raw materials manufacture

FLASC helps scientists and managers torapidly identify the greenest option bycomparing and benchmarking processesand routes to make GlaxoSmithKlineproducts using a simple scoring system. It identifies the materials that have thebiggest environmental impacts andprovides guidance on how to reducethose impacts. The tool also quantifiesthe energy and materials used in productmanufacture, the emissions released andpotential environmental impacts. And itserves as a tracking system for syntheticroute or manufacturing process improve-ment throughout GlaxoSmithKline.


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When patients use pharmaceuticals,some of the active ingredient may not becompletely metabolised and will generallybe excreted. Wastewater treatmentplants remove most pharmaceuticalresidues in the environment, but smallconcentrations do end up in rivers or thesea. In areas without wastewater treat-ment, higher concentrations are releasedto the environment.

In 2004, following consultation withexternal stakeholders, we developed adraft position statement on pharmaceuti-cals in the environment. This will becompleted in 2005.

Internally, we have developed businessprocesses to ensure that we carry outappropriate environmental tests as andwhen we should. Since environmentalrisk assessments (ERAs) are part of thenew drug approval process in the EU and US, we work with various regulatoryagencies to ensure that the potentialenvironmental impacts of pharmaceuti-cals are understood and minimised. Wealso work with other pharmaceuticalcompanies, universities and researchgroups to develop the science andmethodologies to assess the environmentalrisks of pharmaceuticals in the environ-ment and increase understanding of suchrisks. For example, in the US, GSK hasbeen involved with the PharmaceuticalResearch and Manufacturers of America(PhRMA) in developing the PhATE(Pharmaceutical Assessment andTransport Evaluation) model, a geograph-ically explicit model based on hydrologyand population patterns.

In 2004, we initiated more comprehen-sive environmental risk assessments usingthe PhATE™ model for about 40 activepharmaceutical ingredients (APIs), includ-ing paroxetine (the active ingredient inPaxil/Seroxat). These assessments will bepublished on our website. The underlyingenvironmental fate and effects test datafor pharmaceutically active componentsof GSK marketed products are now beingembedded in Safety Data Sheets (SDS).These are available on our website atwww.msds-gsk.com.

The risk assessments carried out to dateindicate that our products do not appearto pose a risk for humans or the environ-ment based on current methods forascertaining effect levels. However, wecontinue to monitor the latest scientificstudies and findings to improve our riskassessments in this area. A more in-depthreview of our work on pharmaceuticals inthe environment can be found on thefollowing page.

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When pharmaceuticals are administeredto patients, some of the active pharma-ceutical ingredient (API) may not becompletely metabolised (biochemicallyaltered and inactivated). Theseunmetabolised portions are generallyexcreted and find their way into sewagesystems where they are transported towastewater treatment systems thatremove most of the pharmaceuticalresidues. However, extremely low concen-trations may pass through the waste-water treatment plant and be dischargedto the environment. Historically, thepresence and amount of pharmaceuticalsin different parts of the environmenthave been estimated. Recently, as a resultof advances in analytical techniques,extremely low concentrations of pharma-ceuticals are being measured in waste-water, surface water (rivers and streams)and drinking water. In addition, low leveleffects on aquatic organisms have beenobserved for specific APIs such assynthetic hormones.

The US Food and Drug Administration(FDA) have regulated pharmaceuticals inthe environment in the USA since 1977under the auspices of the NationalEnvironmental Policy act of 1969.Regulation occurs through the environ-mental review process for New DrugApplications submitted to the FDA. InEurope, draft guidelines for EnvironmentalRisk Assessments (ERAs) that accompanyMarketing Authorisation ApprovalApplications have been available for anumber of years. The most recent guide-lines were issued in January 2005 and arein the external comment period untilApril 2005. A key change in these guide-lines is the requirement for chronic ratherthan acute ecotoxicity testing, recognising

that most pharmaceutical active ingredi-ents are not acutely toxic but may havelonger term chronic effects at low levels.In Canada, a requirement for environ-mental assessment is in place and aspecific ERA process for pharmaceuticalsis under development. In Sweden, aclassification scheme based on environ-mental characteristics of APIs is in development.

Since the late 1980’s, GSK has beenactively working with various regulatoryagencies to ensure that potential environ-mental impacts of pharmaceuticals areunderstood and minimised. Over the lastseveral years, there have been significantindustry efforts to develop improvedenvironmental risk assessment models inthe United States and Europe. In the US,the pharmaceutical industry trade associ-ation, PhRMA (Pharmaceutical Researchand Manufacturers of America) devel-oped a watershed specific model topredict environmental concentrationsfrom patient use (Anderson et al.). Theindustry task force developed a state-of-the-art geographically explicit model tofacilitate a deeper understanding ofpotential environmental distribution ofpharmaceuticals at a local or regionallevel. The PhATE™ (PharmaceuticalAssessment and Transport Evaluation)model is a watershed-based approachand was developed as a tool to morerealistically estimate concentrations ofactive pharmaceutical ingredients (APIs)discharged to U.S. surface watersthrough consumption of medicines.

PhATE™ uses a mass balance approach tomodel predicted environmental concen-trations (PECs) in eleven watersheds thatare felt to be representative of most

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hydrologic regions of the United States.Upon dividing the associated rivers intodiscrete segments, the model estimatesthe mass of API that enters a segmentfrom upstream or from sewage treatmentworks (STWs) and the mass that is subse-quently lost from the segment via instream loss mechanisms or flow diver-sions (i.e. man-made withdrawals). STWdischarge loads are estimated based onthe population served, API use per capita,and the mass of the API removed in theSTW. Monitoring data generated by theUnited States Geological Survey wereused to corroborate the model. Inaddition, industry groups workingthrough PhRMA developed human healtheffects data on the pharmaceuticalcompounds reported by USGS (Kolpin et al. 2002; Tabor and Barber 1993) andused the PhRMA PhATETM (PharmaceuticalAssessment and Transport Evaluation)model to carry out human health riskassessments for 26 active pharmaceuticalingredients (APIs). A manuscript on thiswork has been submitted for publicationin the peer-reviewed literature (Schwab et al. 2005). Another industry groupunder PhRMA has been working onpotential impact of APIs on aquatic life.To date, a manuscript on issues connectedwith these types of assessments has beenprepared for publication (Cunningham etal. 2005) and a literature database hasbeen compiled on aquatic life impact data.

Independently, GSK has been using thesemodels and methods to identify potentialimpacts of GSK pharmaceutical productsentering the environment throughpatient use. A paper on the environmen-tal risk assessment of paroxetine, the APIin Paxil/Seroxat, has been published(Cunningham et al. 2004). This paper

focuses on potential impacts of paroxe-tine on aquatic life. Another paper is inpreparation that includes assessment ofpotential impacts on human health aswell as aquatic life in the US for about 40 GSK APIs. Evaluations for selectedEuropean catchments using the GREAT-ER (Geography-referenced RegionalExposure Assessment Tool for EuropeanRivers) Model, similar to PhATE™, are alsoin progress. In addition, the assessmentsand available environmental data forindividual APIs are being provided inSafety Data Sheets that are available onthe GSK website. The risk assessmentsthat have been carried out to date usingthese models, combined with currentlyavailable human and environmental fateand effects data and methods, indicatethat GSK pharmaceuticals in the environ-ment do not appear to present a risk tohumans or the environment. As part ofits product stewardship activities, GSKcontinues to monitor the latest scientificstudies and findings to continuallyimprove risk assessments in this area.GSK is committed to providing leadershipwith regard to the science needed toassess potential impact, mitigation andmanagement strategies, and to data,assessment and communication transparency.

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References

Anderson, P.D., V.J. D’Aco, P. Shanahan, S.C. Chapra, M.E. Buzby, V.L. Cunningham,B.M. DuPlessie, E.P. Hayes, F. Mastrocco, N.J. Parke, J.C. Rader, J.H. Samuelian, andB.W. Schwab. 2004. Screeninganalysis of human pharmaceuti-cal compounds in U.S. surfacewaters, Environmental Science& Technology, 38: 838-849.

Kolpin, D.W., E.T. Furlong, M.T. Meyer, E.M. Thurman, S.D. Zaugg, L.B. Barber, andH.T. Buxton. 2002.Pharmaceuticals, hormones,and other organic wastewatercontaminants in U.S. streams,1999-2000: a national recon-naissance. EnvironmentalScience & Technology, 36: 1202-1211.

Tabor, C.F., and L.B. Barber.1996. Fate of linear alkylben-zene sulfonate in theMississippi River: EnvironmentalScience & Technology, 30: 161-171.

Schwab, B.W., Hayes, E.P., Fiori,J.M., Mastrocco, F.J., Roden,N.M., Cragin, D., Meyerhoff, R., D’Aco, V.J., Anderson, P.D.,Human pharmaceuticals in U.S.surface water: A human healthrisk assessment, submitted(12/04) to RegulatoryToxicology and Pharmacology.

Cunningham, V.L., Buzby, M.,Hutchinson, T., Mastrocco, F.,Parke, N., Roden, N.,Pharmaceuticals in theEnvironment: Implications forPotential Aquatic Life Impacts,2005, in review.

Cunningham, V.L., Constable,D.J.C., and Hannah, R.E.. 2004.Environmental Risk Assessmentof Paroxetine, Environ. Sci.Technol., 38: (12) 3351-3359.

Metered dose inhalers (MDIs) were firstintroduced in the 1950s and are used asone of the main forms of treatment forasthma sufferers. They are pressurised,hand-held devices that use propellants todeliver doses of medication to the lungsof patients. CFCs were traditionally usedas the propellant because they are non-toxic, non-reactive, non-flammable andodour and taste free.

When a patient uses the MDI, the propel-lant is released into the atmosphere. In2004, 464 thousand kilograms of CFCpropellant were released when patientsused our products in the EU and US. Amuch smaller proportion of CFCs - 59thousand kilograms - escaped duringproduction (see ozone depletingsubstances in manufacturing on page 94).

Although the Montreal Protocol bans theproduction of CFCs, it does recognise anumber of “essential uses” which areexempt from the ban. MDIs fall under theessential use exemption and are thereforestill allowed to be manufactured.

We plan to eliminate the use of CFCsfrom our product portfolio by 2010. Wenow offer a selection of alternatives toCFC-containing MDIs in most countries.The main alternative propellant we use isHFC 134a. We have also invested heavilyin dry powder delivery systems that donot use CFCs. We estimate that the totalamount we have spent on new plant andR&D on CFC-alternatives is over £550million ($1 billion) since we identified this as an issue in the 1980s.

We are also researching alternatives toHFC 134a, which has a high globalwarming potential. A more in-depthreview of our progress to eliminateemissions of ozone depleting substancescan be found on page 93 and 113.

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Performance

Note to Ozone Depletion Potential ChartsWe report ozone depletion potential in CFC-11equivalents as defined by the United NationsEnvironment Programme (UNEP) Ozone Secretariat(www.ghgprotocol.org and www.ipcc.ch)


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(million kg)

2001 1.900

2002 1.500

2003 0.782

2004 0.464

Ozone Depletion Potentialfrom Patient use of


ODP

Ozone Depletion Potential from Patient Use of Metered Dose Inhalers

Ozone depletion potential from patient useof metered dose inhalers decreased by40.7% since 2003 (75.6% since 2001).

Ozone depleting substances (ODS) are a group of chemicals that can lead todestruction of ozone in the upper atmos-phere. The mechanism of this chemicalreaction is complex and it took manyyears for scientists to understand theeffect on the environment. When ODSsare released at the earth’s surface, theytend to accumulate close to the surfacein the troposphere where they are notreactive and do not destroy the ozone.However, ODSs are eventually carried intothe stratosphere where they are convert-ed into more reactive gases, which thenparticipate in reactions that destroyozone. The loss of ozone in the upperatmosphere causes more ultraviolet-Bradiation to reach the earth’s surface andthis can cause adverse environmentaleffects and adverse health effects such asskin cancer, ageing of the skin, eye disor-ders and suppression of the immunesystem. Before these adverse impactswere understood, industrial use of ODSswas very common.

GlaxoSmithKline uses ODSs in itsMetered Dose Inhalers (MDIs). MDIs areused to treat Chronic ObstructivePulmonary Disease or Asthma. Asthma isa chronic and life threatening diseasethat affects 300 million people aroundthe world. Metered Dose Inhalers (MDIs)are one of the main forms of treatmentfor asthma. MDIs were first introduced inthe 1950s. The MDI is a pocket-sized,hand-held, pressurised multiple doseinhalation system that can deliver aprecise dose of medication to the airwayswhen used appropriately. Essentialcomponents of an MDI are a canister, thedrug substance, a gas to propel the druginto the patient and a device for releas-ing and directing the dose.

For decades, chlorofluorocarbons (CFCs),which are ozone-depleting substances,were the most suitable propellant for use in MDIs because they are non-toxic,non-reactive, non-flammable, odour and taste free and excellent solvents.However, CFCs have now been recog-nised as ozone depleting and globalwarming gases.

In support of the principles of theMontreal protocol GlaxoSmithKline hasembarked on a comprehensive reformu-lation programme for all our metereddose inhalers. The company has alsoinvested heavily in dry powder deliverysystems that do not use CFCs. This hasbeen a long and costly process with totalcosts estimated at $1 billion. As a resultof this work, GlaxoSmithKline now offersa selection of alternatives to CFC-containing MDIs in most countries. Weplan to make no further requests for“essential use” CFC volumes after 2005and plan to eliminate the use of CFCsfrom our product portfolio and opera-tions by 2010.

GlaxoSmithKline is taking steps to reduce the ozone depleting impactarising from our processes, products and operations by:• reformulating the propellant in the

MDIs from CFCs to HFC 134a, a non-ozone-depleting (although still aglobal warming) replacement;

• minimising emissions arising fromMDIs rejected during the manufactur-ing stage in accordance with nationalstandards;

• launching globally the non-CFC MDIas soon as possible after obtainingregulatory approval;

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Learn More About

• Ozone Depletion

• Read about theMontreal proto-col on the UNEPwebsite

• removing the corresponding CFCproduct from the market within 6-12months of launch depending onindividual country health practices;

• offering a choice of an MDI or DPI(dry powder inhaler) device for ourrespiratory drugs;

• continuing to invest in research anddevelopment of novel inhaler deviceswith even lower environmentalimpacts;

• minimising fugitive emissions of CFCsand other ozone-depleting gases fromour manufacturing sites throughengineering controls and replacinghalons (fire-fighting gases) and refrigerants.

GSK has been working to reduce produc-tion-related releases of ODSs and toreplace ancillary plant (including coolingequipment) containing ODSs. GSK hastwo targets related to ODSs, one relatedto production-related emissions and theother related to emission of ODSs fromancillary equipment. GSK has stated thatby the end of 2005, it will eliminate atleast 50% of production-related ODSemissions and is currently on schedule tomeet this target. GSK has also stated thatit will eliminate the emission of ODSsfrom ancillary equipment by the end of2005. GSK is not on schedule to meetthis target and a team will be formed in 2005 to develop a business strategy to eliminate these emissions as soon as possible.

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While GlaxoSmithKline does not usenatural product collection as a majorsource for existing products or as a majorsource of compounds for development ofpharmaceuticals, we do work withcollaborative partners such as Extracta inBrazil and the Centre for Natural ProductResearch in Singapore to collect somenatural products. Because of the impactthat their collection might have on biodi-versity, medical researchers must followrigorous standards regarding evaluationand collection of natural products. Weare confident that our screening activitiesare conducted according to the principlesset out in the Convention on Biodiversity(CBD).

GlaxoSmithKline’s Position on Biodiversity• Natural resource materials are poten-

tially valuable sources of novel biologi-cally active molecules which, onceidentified and their properties fullyanalysed, can serve as models for theinvention of new, lifesaving medicines.

• GlaxoSmithKline recognises that allnations have sovereignty over thebiological resources and indigenousknowledge within their territorialboundaries. Equally, unauthorised orunrestrained removal of naturalmaterials from their indigenoushabitats can harm the ecology andeconomy of the country concerned.

• GlaxoSmithKline’s drug discoveryefforts increasingly focus on high-throughput screening of syntheticchemical compounds. We thereforehave limited interest in natural materialcollecting and screening programmes.However, where screening programmes

are in place, the company supportsthe principles enshrined in theConvention on Biological Diversity (CBD).

• In the event of GlaxoSmithKline devel-oping a commercial product from ournatural material screeningprogrammes, GlaxoSmithKline willensure a clear benefit is returned tothe country of origin. This benefitsharing may amount to payment offair and reasonable royalties or othermeans determined by mutual agree-ment on a case-by-case basis.

• GlaxoSmithKline has a number ofpatents based on natural productsand it is possible that more patentswill arise from our screeningprogrammes.

Specifically, GlaxoSmithKline has alwaysundertaken to: • work only with organisations and

suppliers with the expertise and legalauthority to collect plant and othernatural material samples. Theseinclude botanic gardens, universitiesand research institutes around theworld;

• ensure that the governments in developing countries are informed of and consent to the nature andextent of any proposed naturalmaterials collection;

• protect biodiversity by classifyingsamples of plants and other organismstaxonomically and only investigatespecies if their supply is reproducibleand sustainable;

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• work with small quantities of naturalmaterials to discover bioactive princi-ples. Where possible further suppliesof lead compounds and derivatives are synthesised;

• develop sustainable harvesting proce-dures to preserve the ecosystem fromwhich the source material is derivedwhere further supplies of the activecompounds cannot be synthesised;

• where appropriate, collaborate withorganisations to educate and trainlocal people in collecting and screen-ing skills;

• ensure an agreed benefit is returneddirectly or indirectly to the country oforigin in the event of GlaxoSmithKlinedeveloping a commercial productbased on a natural material;

• only transport potentially hazardousresearch and development materialunder contained use conditions and inaccordance with the CBD’s CartagenaBiosafety Protocol.

Conclusion

GlaxoSmithKline is fully aware of ourresponsibilities towards protecting biodi-versity, respecting nature and workingwith the communities in which thesenatural resource materials are found. Byadhering to the principles of the CBD, weare confident that we are operating in asustainable manner and in a way that will enable us to continue developing,manufacturing and marketing new andinnovative medicines that enable peopleto do more, feel better and live longer.

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GlaxoSmithKline is in the forefront of the development and application of new scientific techniques to discover anddevelop new medicines and vaccines. Weroutinely use genetically modified organ-isms (GMOs) in the research and discoveryof new therapeutic agents and also in the efficient manufacture of certainmedical products such as vaccines.

Research and development operationsuse GMOs in a wide range of laboratoryactivities in our work to discover anddevelop new medicines. More specifically,they are used to identify the genetictargets and causes of disease, and todevelop new drugs for conditions such as heart disease, diabetes and depres-sion, as well as antibiotics. We use anumber of different GMOs, predominantlyharmless organisms such as disabledstrains of the bacterium E.coli andeukaryotic cells in culture.

All work with GMOs withinGlaxoSmithKline is controlled to thestrictest national and international regula-tions, and we apply best practice acrossall our facilities. Any work with GMOs issubject to full risk assessment includingsafe conditions of use, storage anddisposal. Any laboratory work withGMOs is performed under conditions ofcontained use, using containment labora-tories appropriate to the risk of thematerials handled. The large-scalefermentation or propagation of GMOs in research and development is alwaysundertaken in fully contained systems. Allprocesses are performed in closed vesselsminimising the risk of release, in line withexisting legislation and best practice. Allwork is controlled by written procedures,and regular maintenance checks ensure

the processes are operated to the necessary level of contained use.

We also manufacture a number ofproducts that are derived from geneticallymodified materials, such as Hepatitis Bvaccine. GMOs are sometimes used asintermediates in the manufacturingprocess of medicines such as antibiotics,but GlaxoSmithKline does not produceany products that are or contain viableorganisms. We have no plans to intro-duce products that are live GMO’s for the foreseeable future. All manufacturingprocesses also operate under conditionsof contained use to prevent the releaseof any GMOs to the environment.

GlaxoSmithKline has a policy of routinelytreating all waste from our GMO opera-tions, to ensure we do not release viableGMOs from our contained processes intothe environment. As a result, all GMOsare inactivated prior to disposal by chemi-cal or heat treatment.

We do not routinely undertake researchand development involving the cultivationof genetically modified plant species.However, one exception was a small-scalefield trial undertaken in Australia todevelop morphine-containing medicines,which are only available on prescriptionfrom a doctor. Research was focused on increasing the yield of alkaloids inpoppies with enhanced properties todevelop more effective pain managementmedicines. The Australian governmentstrictly controlled these small-scale trials.These trials have now been completed,and there are no plans at this stage tomove to large scale production of GMpoppies.

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Land may become contaminated as aresult of past practices in the manage-ment of materials, for example, throughinadequate containment, accidentalrelease or poor disposal practices.Depending on the circumstances, theremay be potential for harm to theenvironment. GlaxoSmithKline employsglobal standards that require, amongother things, the identification andmanagement of contaminated land.GlaxoSmithKline enters into agreementswith relevant authorities to assist in theremediation of contaminated land whenrequired and then directs the remediationof contaminated areas to levels that areconsistent with the expected future useof the land and with local regulatoryrequirements.

Following GlaxoSmithKline’s earlier inves-tigation of operational sites in the UK,it was determined that the majority

featured low probability of contamina-tion, or low hazard and pollution poten-tial if contamination were present. Agroup of seven sites remained for furtherstudy, of which five are thought torequire some remediation and two ofthese sites are undergoing partial or fulldecommissioning in preparation for sale.

In the US, GlaxoSmithKline is currentlyinvolved with 25 sites that must beremediated. These include 14 sites on the US Environmental Protection Agency’sNational Priority List (NPL) of so-called“Superfund” sites, as well as several siteslisted under various state programmes.Most of these sites are abandoned wastedisposal sites where waste generatedfrom a GlaxoSmithKline facility may have

been found among waste generated by several (in some cases, hundreds of)parties and often over many years.

In dealing with remediation sites overnearly 20 years, GlaxoSmithKline hasalways co-operated with the governmentupon notification and confirmation ofour connection to a site, and workedwith the other parties to effect theremediation. GlaxoSmithKline pays its fairshare according to an agreed allocationof costs among the parties participatingin the remediation. Even in cases wherewe cannot initially agree on an allocation,we employ an interim allocation to allowthe work to go forward and settle finalallocation later. GlaxoSmithKline generallyparticipates in groups of companiesorganised to remediate sites in accor-dance with its allocation, among otherfactors. Participation varies from monitoring the activities of a committeeto taking a leadership position in the committee.

Since 1980, GlaxoSmithKline and itsheritage companies have spent over£100 million on remediation of morethan 50 sites. Many of these sites willrequire long-term operation and mainte-nance (O&M) for systems such asgroundwater treatment facilities. For“mature” sites – where “construction” is complete but O&M may be requiredlong-term – GlaxoSmithKline and itscorporate partners assess the possibilityof returning such sites to beneficial use,such as community parklands, and whereappropriate, assist in the implementationof such projects.

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Occupational chemical hazardevaluation - Continuedprogress in reduction, refine-ment and replacement of test-ing in laboratory animals in 2004

Creation of GlaxoSmithKline products,from earliest research and developmentthrough to full-scale manufacture,requires that employees work directlywith, or in proximity to, chemicals. To safeguard worker health,GlaxoSmithKline health and safetyprogrammes have been organised toprovide information on unique chemicalhazards and to define health protectiveoccupational exposure strategies. Thisdual approach supports design of equip-ment and facilities for containment andcontrol of chemicals in the workplace toprevent or minimise human exposure andthe possibility of harm. It also providesappropriate information for first aid andother care in the event of accidentalcontact with chemicals.

Occupational toxicologists in theCorporate Environment, Health andSafety (CEHS) group focus on under-standing the potential effects ofGlaxoSmithKline drugs and the chemicalbuilding blocks for these drugs handledin research and development andmanufacturing settings. Special emphasisis placed on understanding the results ofpossible chemical exposure to the skin,eyes and respiratory tract; because theyare common routes of workplace chemi-cal exposure, as well as other humansystems. Historically, achieving an under-standing of the effects of chemicals inthe workplace has involved use of labora-

tory animals as models for humansystems. Growing scientific and publicawareness around ethical use of laboratoryanimals has guided GlaxoSmithKline’sefforts to continuously reduce reliance onanimal models for occupational toxicolo-gy testing wherever possible withoutcompromising worker safety. CEHStoxicologists have developed a programmeto characterise the occupational healthhazards of GlaxoSmithKline materialsbased on computer-generated prediction,cell and tissue culture and other methodsnot relying on animal testing.

We use a tiered approach to testing. Inthis approach, tiered evaluation of thepotential effects of chemicals is initiatedwith searches for applicable informationfrom literature databases. Structure-activ-ity computer models are also used topredict possible effects. Initial research iscomplemented by evaluation of chemicalparameters (such as acidic or basiccharacter) that can contribute to possibleadverse effects. In many cases, this firsttier of assessment is sufficient to under-stand the hazards posed by chemicalsmaking it possible to project likely effectsfrom previously characterised materials tonew materials and avoid use of laborato-ry animals altogether.

When insufficient or equivocal informa-tion is available from the initial tier ofassessment, a second tier of testing isinitiated. This second tier of testinginvolves use of cell culture, tissue cultureand bacterial models. GlaxoSmithKlinescientists have adopted several animal-use reduction techniques recognised byhealth regulatory and advisory agencies(such as the UK Health and SafetyExecutive and US National Institutes of

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Health) to organise the second tier ofevaluation. GlaxoSmithKline scientistsactively develop, publicise and validatealternative methods used in the secondtier to allow increased reliance on testmethods not using laboratory animals.Again, results of Tier II testing exemptsmany materials from evaluation in animalmodels. Finally, only when chemicalproduction levels reach certain highvolume levels (thereby increasing thepotential for inadvertent or accidentalchemical exposure) are tests with labora-tory animals considered. In many casesthese tests are required by regulatoryguidelines. Even in these cases, alternatemeans for identifying chemical hazardsare sought, and testing is done withreduced animal numbers. Data onanimals used for hazard determination issubmitted for regulatory reporting andthe numbers of animals involved inoccupational toxicology testing areincluded in the animal research section of the Corporate Responsibility Report.

Consistent application of the tieredapproach to chemical hazard assessmentadopted in 2001 has resulted in signifi-cant refinement of testing undertaken forworker health and safety purposes andcontinues to yield many examples ofdiminished and more effective use ofanimals.

Despite a great deal of progress, it wasrecognised in 2003–2004 that theintegrated worker safety test strategyhad a significant gap because there wasno reliable non-animal test for the assess-ment of the potential of chemicals toirritate skin. Irritant damage to skin is amajor source of occupational ill-healthacross the chemical and pharmaceutical

industry. Furthermore, although playing a valuable role in our ongoing testingprogramme, our current screen forchemical irritation of the eyes relies uponanimal tissues as source materials. Withthis in mind, two collaborative projectswere started in 2003 and continued in2004 in partnership with externalresearch organisations, SafePharmLaboratories, Derby, England andSkinEthic Laboratories, Nice, France, toevaluate the performance of laboratory-prepared human tissue systems forprediction of the irritant potential ofchemicals.

The first model evaluated the perform-ance of reconstituted human-derivedepidermal (RHE) tissues (derived via asemi-automated process from skin biopsyspecimens) for predicting the skin irritantpotential of chemicals. Twenty-threedifferent chemicals, representative of those used or developed byGlaxoSmithKline, were applied directly tothe cultured tissues and assessed for theireffects on cell viability (survival overtime), microscopic tissue structure andcytokine (cellular messenger moleculesinvolved in the response to irritation)release. Overall concordance with existingdata obtained from traditional assess-ments using live animals was excellent(80% or greater). Furthermore, by evalu-ating the time-course of toxicity it waspossible to distinguish non-irritants fromirritants and severe irritants from mildirritants. This ability to determine quanti-tative, graded effects is a major stepforward towards identifying a real alter-native to the animal models. The assaywas also shown to be reliable and reproducible both within and betweenlaboratories, which contrasts with wide

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variability reported for the current animal assay.

The second study used a human cornealepithelial (HCE) model based upon animmortal cell line of human origin topredict eye irritation. Twenty-one chemi-cals were tested, applied directly to thecultured corneal tissues. Responses in theform of effects on viability, microscopicappearance and cytokine release werethen assessed. Results again showedexcellent concordance (over 80%) withdata derived from traditional modelsusing live animals and an ability to distin-guish in graded fashion non-irritants,mild irritants and severe irritants.

The results of these two studies verify the utility of these tissue culture modelsas predictive of results previously onlyachievable using live subject testing.Statistical evaluation of the studiessuggests a high level of confidence in theresults and we are planning to incorpo-rate the two models into the tieredtesting strategy for assessing occupation-al chemical hazards. In conjunction withcurrent computerized assessments andother screening methods, sufficient infor-mation can now be obtained on theirritant potential of materials so that inmany cases, animal assays will not beneeded for worker safety purposes.Further investigative studies are planned,particularly with the corneal (eye) assay,to enable us to position these wholly invitro techniques as the sole technologyused for the assessment of the irritantpotential of materials. Communicationsare also ongoing with internationalbodies such as ICCVAM (US InteragencyCoordinating Committee for Validation of Alternative Methods) and ECVAM

(European Centre for the Validation ofAlternative Methods) to raise their aware-ness of GlaxoSmithKline’s efforts in thisarea, and with other companies in thechemical and pharmaceutical industry tofacilitate co-operation in progressingdevelopments in this area.

These accomplishments highlightongoing efforts by GlaxoSmithKline tosignificantly refine testing undertaken forworker health and safety purposes withthe goal of reducing use of laboratoryanimal testing and operating moreefficiently in circumstances where testingwith live subjects can not be avoided.

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Our supply chain is complex. It rangesfrom major strategic relationships withcontract manufacturers that make finalmedicines for us to suppliers of keymaterials.

We have EHS standards for suppliers. Wealso include EHS requirements, based onthe standards, in our initial agreementswith new key suppliers and when werenew contracts.

We conduct regular EHS audits of ourkey suppliers to assess performanceagainst our EHS standards and key legis-lation. We also carry out EHS auditsbefore we start working with major newsuppliers. We select which suppliers toaudit on the basis of risk, includingpotential hazards. (The audits also coverbasic questions on human rights.)

In 2004, we carried out 35 site-basedEHS audits. Sixteen of the audits were inAsia, eleven in Europe, six in the US, onein Canada and one in Mexico. We alsocarried out four follow-up reviews.

We found a wide variation in perform-ance across the sites audited. Thelowest score was 22% and the highestwas 92%. We make recommendations to sites following the audits and have a process to monitor progress, with aparticular focus on poorly performing sites.

In 2004, three potential suppliersachieved unacceptable EHS scores (lessthan 30%) and therefore we did notsource from them. No existing supplierscored below 30%.

In 2004, we developed an action packfor use by our procurement managers tohelp them identify the EHS risks associat-ed with procurement activities.

In the US, we signed up to GreenSuppliers Network (GSN) - a programmerun by the US Environment ProtectionAgency to help small and medium-sizedsuppliers to reduce their environmentalimpact. In 2005, we will encourage oursuppliers to participate in the project.

Key Audit Findings

EnvironmentWe found the basic elements of anenvironmental management system at allof the sites we audited and 50% of thechemical sites were certified to the inter-national environmental managementstandard ISO 14001. Most sites had agood understanding of environmentalregulations and positive relationshipswith regulators.

In China and India, we generally found ahigh level of compliance with regulationsand effective management of waste-water. However, the lack of infrastructurein these countries presents challenges.For example, the waste disposal optionsare limited and electricity is generatedmainly from coal or poor-quality oil. Wealso found that air emissions were poorlycontrolled in a few cases.

Health and SafetyWe found that health and safety wasgenerally well managed at sites in Europeand North America. However, we identi-fied some challenges in emergingeconomies, especially in areas relating tofire prevention and response, occupation-al hygiene and control of chemicalexposure, identification of hazards andrisks, and systems for reporting andinvestigating incidents.

Suppliers

122

We have approximately 80 centrallymanaged key suppliers, which includeboth contract manufacturers and suppli-ers of materials.

We are working towards quantifying theenvironmental impact of our contractmanufacturers. This is a more difficultprocess than collecting data from ourown sites because contract manufactur-ers are independently managed.

In 2004, we collected data from 14major contract manufacturers for somecore EHS parameters. The contractmanufacturers produced 6,185,459kilograms of product for GSK (includingraw materials, primary and secondarymanufacturing and secondary packag-ing). They disposed 37.8 millionkilograms of hazardous waste and 4.9million kilograms of non-hazardouswaste. They used 541,535 gigajoules ofenergy related to energy and transportactivities (146,737 gigajoules of electrici-ty, 392,673 gigajoules of other non-transport fuels, and 2,125 gigajoules of transport fuels). Data from thesecompanies are not included in any of the charts and they are not included in the verification by ERM.

See health and safety of Suppliers onpage 148.

Supplier Performance

123

As a minimum, we aim to comply withlegal requirements on environment,health and safety.

Environmental Fines andPenalties • Brasov, Romania - 24,333,400 ROL

(approximately £409) from local watercompany for exceeding COD limit

• Zebulon, US - $100 (approximately£55) from local wastewater authorityfor exceeding permitted dischargelimit for cyanide

• Clifton, US - 4 notices of violationwithout fines for pH excursions, oneof which occurred in 2003

• Zebulon, US - 2 notices of violationwithout fines for pH, 1 for mercury, 1 for cyanide

• Memphis, US - Hazardous wasteinspection resulted in 3 minor violations

• Ware GMS, UK - Unlicensed dischargefrom IPC AL7014 licensed processes

Health and Safety Fines andPenalties• Clifton, US - $900 (approximately

£500) OSHA fine for machine guard-ing incident

Compliance

Our EHS Plan for Excellence sets out astrategy to improve our performanceover the ten-year period to 2010, startingfrom a 2001 baseline. This includes inter-im targets to be reached by the end of 2005.

We are on track to meet seven of our tentargets. These cover some of our mostimportant environmental issues, includingenergy and water consumption, ozonedepleting potential, global warmingpotential, wastewater quality, volatileorganic compound emissions and non-hazardous waste. We may not achievethe three targets on hazardous waste,recycling and ozone depletion potentialof ancillary equipment by the end of

2005. A fuller explanation of ourperformance is provided on the relevantpages of this report. Next year we will set new targets for 2010.

Our group targets are based on improve-ment plans and forecasts from our sites.During the year, we asked all our sites toreconfirm their commitment to the 2005targets they set in 2001. See more onour approach to setting targets on page40.

This is a summary of our environmentalperformance per unit of sales. The graphshows the overall improvement (%) since2001 and our 2005 targets.

Progress Towards Targets

124

Data Charts

• PerformanceSummary

Progress Towards Targets (cont.)

Performance Summary

2001 Baseline 2004 Baseline 2005 Target

expressed as a % change from a 2001 baseline

Performance Summary

Energy Consumption 100 93.1 92

Global Warming Potential Energy 100 93.1 92

ODP Ancillary 100 39.5 0

ODP Production 100 32.5 50

VOCs 100 80.4 70

Water Consumption 100 76.7 90

COD 100 75.8 70

Reduction in Waste Disposed due to Recycling* 100 111.5 90

Hazardous Waste Disposed 100 117.3 85

Non-hazardous Waste Disposed 100 81.2 92

125

* The formal wordingof our target is toincrease the propor-tion of wasterecycled by 10%

*

The health and safety of employees andcontractors is an absolute priority forGSK. We systematically assess the risksassociated with our operations and takeaction to protect employees and others inthe workplace.

We track the number of cases of work-related injury and illness resulting in timeoff work. Our target is to reduce work-related lost time injuries and illnesses per100,000 employees by 15% every yearuntil the end of 2005. During 2004, ourinjury and illness rate remained almostconstant and therefore we did not meetour target. This may be partiallyexplained by improvements in our report-ing systems, including training, resultingin more accurate data.

We will redouble our efforts to resumethe positive trend established between2001 and 2003 that led to a 30% reduc-tion in the illness and injury rate.

We routinely monitor the causes ofincidents and assess what can be learnedto avoid them happening again.

About the Health and SafetySection of This ReportThis is the 5th year that we have report-ed on our health and safety performance.The legacy companies (Glaxo Wellcomeand SmithKline Beecham) individuallypublished EHS reports for a number ofyears prior to the formation of GSK in2000. Copies of these reports are avail-able on the Corporate Register Website.

In previous years, we have published aseparate EHS report alongside ourCorporate Responsibility Report, but thisyear we have fully integrated the two.

Scope of DataThe health and safety data covers thecalendar year 2004. It is collected fromall our 84 pharmaceutical and consumermanufacturing sites, 6 of 8 biologicalsmanufacturing sites and all 24 R&D sitesas well as all 6 distribution centres, all 6major office locations and 63 of oursmaller offices and sales locations. Weinclude data for sites that were in opera-tion for all or part of the year.

Notes attached to the charts explain thescope and data collection process foreach parameter in more detail.

VerificationThe environment, health and safetysections of this report are externallyverified by ERM (Environmental ResourcesManagement). Web pages to which theverification applies are indicated by thesymbol displayed on the right.

See ERM’s Verification Statement on page149.

Health and Safety

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We manage health and safety throughan integrated environment, health andsafety (EHS) management system. Thesystem incorporates our EHS andEmployee Health Policies, EHS Vision and64 Global EHS Standards. Our EHS Planfor Excellence sets out our strategy forimproving EHS performance up to 2010.See more on our EHS ManagementSystem on page 18.

Our Corporate Environment, Health andSafety (CEHS) and Employee HealthManagement (EHM) teams help coordi-nate our health and safety programmes.See more on our EHS ManagementOrganisation on page 11.

In these pages we summarise activitiesduring 2004 that relate specifically tohealth and safety. See the EHSManagement section on page 5 for information on how we manage environmental and broader EHS issues.

Health and Safety FeedbackFrom our EHS AuditsWe aim to conduct EHS audits at eachoperational site at least once every fouryears. We carry out more frequent visitsat selected sites, depending on an assess-ment of risk and the issues raised byprevious audits. In 2004, 33 sites wereaudited including three key officelocations. The average score was 71%.

Our audits identified several priorityareas: • Chemical risk assessment and control• Managing resilience and mental well-

being• Ergonomic risk assessment and control• Scope and adequacy of workplace risk

assessments• Management systems approach to

auditing EHS programmes• Root cause analysis of EHS incidents• Implementation of permit-to-work

programmes• Management of contractors

All sites are required to develop plans toaddress any weaknesses and opportuni-ties to improve identified in the audit.Auditors monitor sites’ progress in imple-menting the plans. In 2004, the EHSaudit process and scoring system werefurther refined based on experience andfeedback. We are trialling EHS auditingsoftware on our intranet site to help theauditors track progress, and aim to havea fully functional version ready in 2005.

How We Manage Health and Safety

127

OHSAS 18001 CertificationIn 2004, four sites achieved certificationto the international health and safetystandard OHSAS 18001 for the first time.This brings the total number of manufac-turing sites certified to 14 out of 84pharmaceutical and consumer manufac-turing sites with one additional site that certified only the utilities area. The certified sites are in China, Egypt, France,India, Mexico, Poland, Turkey and theUK. See audits and certification on page43 for information on certification to theenvironmental management standard ISO14001.

Health and Safety WeekGSK runs an annual Health and SafetyWeek every October (to coincide with the European Health and Safety week).Information kits are sent to all sites tohelp them develop ideas and plan activi-ties. In 2004, over 13,800 employeesfrom 67 sites in 29 countries took part in the Health and Safety Week. Activitiesincluded sports days, safe driving educa-tion, ergonomics training, awareness-raising on healthy eating and lifestylesand family participation events.

How We Manage Health and Safety (cont.)

128

GlaxoSmithKline’s mission - improvingthe quality of human life by enablingpeople to do more, feel better andlive longer - depends on its people. AtGlaxoSmithKline we are committed tocreating the best place in which thebest people can do their best work inorder to achieve this mission.

When it comes to the best people, thehealth of our employees is vital to ourultimate success. The company’s perform-ance depends on people who are physi-cally and mentally able and available tomeet our business goals. The EmployeeHealth Management (EHM) functionprovides the global framework and strat-egy that supports the protection andpromotion of employee health and well-being. A key component of this strategyis disease prevention, which is accom-plished through targeted health educa-tion and behaviour change programmes.Delivery of services and programmeswithin this framework is co-ordinatedwith the relevant Corporate and BusinessHuman Resources and Environment,Health and Safety functions globally.

To attract, retain and develop the bestpeople, we need to have the rightculture; a culture that supports a resilient,diverse, healthy and performance-focused workforce. Resilience is the setof skills and behaviours necessary to besuccessful in the midst of a fast pacedand continuously changing work environ-ment. A web-based Team ResilienceToolkit provides managers with tools toassess organisational risks to well-beingand develop action plans to addressthem. There is a group-wide commitmentto supporting and enhancing theresilience of managers and staff, paying

attention to stress prevention, pressuremanagement and work-life balance. Thisprocess enables teams to identify barriersto doing their best work and promotesa supportive working environment. Theterm "resilience" is used to communicateto managers and staff the business casefor workplace health and well-being. Itemphasises the positive nature of organi-sational initiatives aimed at improvingperformance in a competitive businessenvironment and the positive nature oftaking personal responsibility formaintaining good health. In 2004, over160 work teams have participated inresilience training leading to enhancedteam resilience. The GlaxoSmithKlineResilience and Mental Well-being strategywas recognised by the UK Health andSafety Executive as a Beacon ofExcellence and one of the best stressprevention strategies they have seen.

On a global basis, we continue to developthe capabilities of Employee Health profes-sionals throughout GSK. Developing theEH Community is a top goal of the group.Regional Skills development workshopsfocusing on the top three global GSKhealth issues; musculoskeletal, mentalhealth and chemical agents, as well as an intranet web community, an EmployeeHealth Professional competency frame-work, and appropriate health interventiontools with global reach, are all importantparts of achieving this goal. The use ofbest practice sharing enables these globalhealth professionals to deliver employeehealth services using the best workprocesses in support of GSK’s businesses.The focus on innovative program designand the use of cost-efficient channels hasled to a broader outreach and moreeffective delivery to employees. Examples

Letter From the Vice President, EHM

129

Robert W. Carr, Vice President,Employee HealthManagement

include innovative and preventionfocused employee benefits, integrated re-engineering of the absence manage-ment process and linkage to OperationalExcellence, optimisation of shared servicedelivery in the US and UK, and a “virtualconsultancy” model for global opera-tions. A key element of helping sitesdeliver best practice services is throughfocused planning and measurement andevaluation. At a group level this has been accomplished through a strategymapping and balanced scorecard approach.

It is through these continued integratedefforts that GlaxoSmithKline willsafeguard and enhance the health andwell-being of employees and, as a conse-quence, will enhance shareholder value.

Robert W. Carr MD, MPHVice President, Employee Health Management

Letter From the Vice President, EHM (cont.)

130

The main indicator we use to measurehealth and safety is the lost time injuryand illness rate, i.e. work-related injuriesand illnesses that result in time off work.Other measures include lost calendardays from injuries and illnesses, andreportable injury and illness without losttime.

Lost Time Injuries and IllnessesLost time injuries and illnesses are work-related incidents that are serious enoughto result in one or more days away fromwork.

In 2004, there were 519 lost time injuriesand 61 lost time illnesses correspondingto a combined rate of 0.30 per 100,000hours worked.

At 71 sites in 35 countries, there were no lost time injuries or illnesses duringthe year. At one site in China, there havebeen no lost time injuries or illnesses for three years. In addition:• two sites in Canada and Mexico

achieved 5 million hours workedwithout a lost time injury or illness;

• one site in Puerto Rico achieved 4 million hours worked without a losttime injury or illness;

• three sites in Bangladesh, Pakistanand Singapore achieved 3 millionhours worked without a lost timeinjury or illness;

• three sites in India, Saudi Arabia and the US achieved 2 million hoursworked without a lost time injury or illness;

• ten sites in China, India, Pakistan,Poland, Spain, UK and the USachieved 1 million hours workedwithout a lost time injury or illness.

See more on injury and illness milestoneson page 55.

Cases of work related mental ill healthare excluded from the overall illness rate.This is because the consistency of report-ing such cases is less robust than otheroccupational illnesses and there are varia-tions in the way these illnesses aredefined under local legislation whichaffects reporting. However, we areworking to address these inconsistenciesand aim to include these cases at afuture date. In 2004, there were 30 casesof work-related mental ill health with losttime, a rate of 0.02 per 100,000 hoursworked.

Note to Injury and Illness ChartsThe health and safety data cover both our employ-ees and contract workers who are directly supervisedby GSK employees.

All injury and illness rates are per 100,000 hoursworked.

Lost time injuries and illnesses are work-relatedinjuries and illnesses that are serious enough toresult in one or more days away from work.

Lost calendar days are the calendar days thatemployees could not work because of work-relatedinjuries and illnesses. This helps to provide ameasure of the severity of injuries and illnesses.

Reportable injuries and illnesses without lost timeare reported incidents that did not result in timeaway from work (lost time). They are more seriousthan first aid but generally less serious than losttime.

We do not include cases of mental ill health in ourlost-time illness rates. This is because of variationsin the way mental ill-health is defined and reportedacross sites, which we are working to address.

Injury and Illness Rates

131

Data Charts

• Lost Time Injuryand Illness Rate

• Lost Time Injuryand Illness Rateby Business

• Calendar DaysLost Rate

• Reportable Injuryand Illnesswithout LostTime Rate

• Reportable Injuryand Illnesswithout LostTime Rate byBusiness

Performance

Injury and Illness Rates (cont.)

132

Lost Time Injury and Illness Rate

Injury Illness

(per 100,000 hours worked)

2001 0.39 0.04

2002 0.31 0.03

2003 0.28 0.02

2004 0.27 0.03

Lost Time Injury and Illness Rate


Lost Time Injury and Illness Rate by Business

2001 2002 2003 2004


Lost Time Injury and Illness Rate by Business

R&D 0.19 0.23 0.19 0.14

Biologicals 2.02 1.60 1.35 1.05





Commercial 0.43 0.36 0.31 0.30

Other 1.23 1.03 1.86 0.89

We track the number of cases ofwork-related injury and illnessresulting in time off work. Ourtarget is to reduce work-relatedlost time injury and illness per100,000 employees by 15% everyyear until the end of 2005. During2004, our injury and illness rateremained almost constant andtherefore we did not meet ourtarget. This may be partiallyexplained by improvements in ourreporting systems, including train-ing, resulting in more accurate data.

We will redouble our efforts toresume the positive trend estab-lished between 2001 and 2003that led to a 30% reduction in the illness and injury rate.

In 2005, we will need to achieve a24% improvement to put us backon track to achieve our 2005target.

133


134

Calendar Days Lost Rate

Injury Illness


2001 8.61 0.07

2002 7.02 1.16

2003 6.14 0.68

2004 6.53 0.74

Calendar Days Lost Rate

Lost Calendar Days From Injuries and Illnesses

We also measure the calendar days that employees could not work becauseof work-related injuries and illnesses. This helps to provide a measure of theseverity of injuries and illnesses, although it is not always an accurate reflec-tion, e.g., some illnesses such as hearing loss and sensitisation can result inpermanent disability without resulting in lost time.

In 2004, excluding work-related mental illness, there were 12,748 lost daysdue to injury and 1,446 lost days due to illness. There were an additional1,513 lost days due to work-related mental illness. In 2004, approximately13% of illnesses resulted in permanent disabilities, such as noise-inducedhearing loss, sensitisation to chemicals and some musculoskeletal illnesses.


135

Reportable Injury and Illness Without Lost Time Rate

Injury Illness


2001 0.564 0.148

2002 0.468 0.166

2003 0.388 0.247

2004 0.220 0.177

Reportable Injury and Illness Without Lost Time Rate

Reportable Injury and Illness Without Lost Time

We also measure the number of reportable injuries and illnesses that did notresult in time away from work (lost days). These are work-related injuries andillnesses that are more serious than first aid but generally less serious thanlost time.

In 2004, there were 430 injuries without lost time and 345 illnesses withoutlost time. There was also an additional 9 cases of mental illness without losttime, a rate of less than one per 100,000 hours worked.


Reportable Injury and Illness Without Lost Time Rate by Business

2001 2002 2003 2004


Reportable Injury and Illness Without Lost Time Rate by Business

R&D 0.61 0.57 0.77 0.46

Biologicals 1.67 0.84 1.11 0.26





Commercial 0.27 0.25 0.24 0.23

Other 0.76 1.20 0.47 0.10

Contractors Working on GSK Sites (Not Directly Supervisedby GSK Employees)

Here we report health and safety datafor construction contractors or contractcompanies (e.g. those providing cater-ing and landscaping services) who workon GSK sites but supervise and directtheir own staff. The data for contractworkers who are directly supervised byGSK employees are included in the datafor GSK employees.

In 2004, there were 83 lost time injuriesand illnesses (a rate of 0.40 per100,000 hours worked). There werealso 1,351 calendar days lost (a rate of2.00 per 100,000 hours worked) and412 reportable injuries and illnesseswithout lost time (a rate of 6.55 per100,000 hours worked). This data is notincluded in the verification by ERM.

These rates are higher than those forGSK employees. Contract companiesare responsible for supervising theirown employees and also for providingthem with safety training.

136

Lost Time Injuries and IllnessesSlips/trips/falls, motor vehicle accidentsand over-exertions/strains were the maincauses of injuries resulting in lost time.

Mental illness, musculoskeletal illness(primarily repetitive strain injury) andinfections were the main causes ofillnesses resulting in lost time. There weretwo outbreaks of infection (caused byfood poisoning at on-site catered events),resulting in 22 cases of food borneillnesses that resulted in lost time.

The causes of lost calendar days were very similar.

Performance

Causes of Injury and Illnesses

Data Charts

• Categories ofLost Time Injury

• Categories ofLost Time Illness

• Categories ofReportable InjuryWithout LostTime

• Categories ofReportableIllness WithoutLost Time

Categories of Lost Time Injury

Categories of Lost Time Injury

Slips/Trips/Falls 27.7

Motor Vehicle Accidents 21.8

Overexertions/Strains 20.4

Striking against/struck 12.7

Caught in/on/between 6.9

Thermal/Chemical 4.0

Contact with Sharps 3.5

Other 2.9

137

Note to Injury and Illness ChartsThe health and safety data cover both our employ-ees and contract workers who are directly super-vised by GSK employees.

All injury and illness rates are per 100,000 hoursworked.

Lost time injuries and illnesses are work-relatedinjuries and illnesses that are serious enough toresult in one or more days away from work.

Lost calendar days are the calendar days thatemployees could not work because of work-relatedinjuries and illnesses. This helps to provide ameasure of the severity of injuries and illnesses.

Reportable injuries and illnesses without lost timeare reported incidents that did not result in timeaway from work (lost time). They are more seriousthan first aid but generally less serious than losttime.

We do not include cases of mental ill health in ourlost-time illness rates. This is because of variationsin the way mental ill-health is defined and reportedacross sites, which we are working to address.

Causes of Injury and Illnesses (cont.)

138

Categories of Lost Time Illness Categories of Lost Time Illness

Mental Health 33.0

Musculoskeletal 30.8

Infection 24.2

Non-allergic respiratory 5.5

Non-allergic dermal 2.2

Systemic 2.2

Other 2.2

Causes of Injury and Illnesses (cont.)

Categories of Reportable Injury Without Lost Time

Categories of ReportableInjury Without Lost Time

Overexertions/Strains 26.7

Slips/Trips/Falls 19.8

Contact with Sharps 12.8

Motor Vehicle Accidents 11.2

Striking against/struck 10.0

Caught in/on/between 7.7

Thermal/Chemical 5.3

Animal insect 3.3

Other 3.3

Categories of Reportable Illness Without Lost Time

Categories of ReportableIllness Without Lost Time

Musculoskeletal 31.1

Infection 18.9

Non-allergic dermal 15.5

Physical 13.0

Allergic dermal 8.5

Allergic respiratory 5.1

Non allergic respiratory 3.4

Mental health 2.5

Other 2.0

139

We deeply regret two work-relatedemployee fatalities and one work-relatedthird party fatality during 2004.

In Egypt, a GSK sales representative fellinto an elevator shaft while on a businesstrip. In the United States, a GSK salesrepresentative died in a traffic accident.The third party fatality was in Brazil,where a visitor travelling in a GSK cardied in a traffic accident. We are workingto reduce traffic accidents through ourdriver safety programme. See safetyprogrammes on page 146.

Our health and safety data covers drivingaccidents that occur on business travel.We only report data on commutingaccidents if the vehicle is owned andoperated by GSK. However, we took veryseriously a commuting accident inNigeria, where a truck collided with a bus(not owned or operated by GSK) carryingGSK employees to work, leading to sixemployee fatalities.

We also report serious incidents, i.e.incidents that result in permanent disabil-ity (including amputations) or those thatare reported to the regulatory authorities.In 2004, accidents with machinery result-ed in four employees (at sites in Japan,Pakistan, India and the US) needing tohave part of a finger amputated. Inaddition, one employee (at a site in India)had to have a hand amputated and oneemployee (in the US) needed surgery but suffered no permanent disability. A Canadian employee suffered severehand injuries following a serious car crash.

We investigate the circumstances of all fatalities and other serious incidentsand assess what can be learned to avoidsimilar injuries again. We also issue globalalerts (posted on our intranet site) tocommunicate information that could help prevent similar incidents at other sites.

Serious Incidents and Fatalities

140

At GSK, we recognise that good employ-ee health contributes to good businesshealth.

Our Employee Health Policy – which sitsalongside our EHS Policy – sets out ouroverall commitment to protecting andpromoting the health and well-being ofour employees. An Employee HealthManagement department supports oursites in implementing the policy globally.In 2004, we held workshops in India,Europe and the US for health practition-ers to share information and bestpractice. See more on Employee HealthManagement Organisation on page 15

In 2004, our internal audits identified anumber of weaknesses in the way sitesmanage key health risks, includingchemical agents, ergonomics, andresilience and mental well-being. Wehave responded by developing newstrategies on chemical exposure,ergonomics, and resilience and mentalwell-being and by introducing a numberof new management tools and resources.

In 2005, we plan to set up a new employ-ee health “scorecard” to measure andmonitor the effectiveness of programmesand processes to promote the health andproductivity of our employees.

Our aim is to improve GSK’s businessperformance through enhancing thehealth and resilience of its people. Hereare some of the key health achievementsin 2004:

Resilience and Mental Well-beingThere were 39 cases of mental illness(with and without lost time) at GSK in2004 – a significant reduction from 79 in 2003. There was also a correspondingdecrease in the number of days lost fromwork-related mental illness from 2,956 in 2003 to 1,513 in 2004.

Mental illness was the leading cause ofwork-related sickness absence, account-ing for 33% of all work-related lost timeillnesses. On average, each GSK case ofwork related mental illness resulted in 50 days off work, significantly more thanthe average number of days lost fromother causes of occupational illnesscausing lost time.

We use the term ‘resilience’ to describethe set of skills and behaviours needed to cope successfully with the pressures of a rapidly changing work environment.We have strategies on resilience andmental well-being in the UK and the US.In 2005, we plan to develop a group-wide strategy on these issues.

During the year, a total of 150 teams inthe UK used our Team Resilience Toolkit –developed in 2003 – to identify andmanage risks and measure performance.

In many countries, including the UK andUS, we continued to put in place healthand stress-reduction programmes that arerelevant to local conditions, cultures andworkplace risks. Many of these aredesigned to reduce workplace pressureand encourage a good work-life balance.Examples include personal and teamresilience, personal skills such as timemanagement, flexible working options,

Health Programmes

141


• Resilience andMental Well-being

• Ergonomics

• OccupationalHygiene andControl ofChemicalExposure

• HIV / AIDS

health awareness and education initia-tives, and healthy food choices at our on-site catering facilities. We also providefitness facilities either on-site or off-siteat many of our sites. For example, in theUK, we have a fitness centre at GSKHouse in Brentford, and almost half(47%) of the employees who work thereare members of it. In the US, we havefitness facilities at nine sites and anaverage of 20% of our employees haveenrolled to use the facilities.

In 2004, our sites in Singapore and theUK received awards for initiatives topromote resilience. Our manufacturingsite in Jurong, Singapore, received aPlatinum Award from the HealthPromotion Board of the SingaporeMinistry of Health for programmes whichencourage staff to “work hard, play hardand stay well.” A bronze award was alsopresented to our Quality Road site forhealth programmes. In the UK, the GSKResilience and Mental Well-being strategywas recognised by the UK Health andSafety Executive as a Beacon ofExcellence and one of the best stressprevention strategies they have seen.

See more on our approach to resilienceand mental well-being on page 30.

Ergonomics In 2004, there were 28 cases of muscu-loskeletal illness (with lost time), mainlydue to repetitive strain injury. Theseaccounted for 31% of work-related losttime illnesses – the second most frequentcategory (after mental health). Therewere also 106 overexertion/strain injurieswith lost time accounting for 20% of losttime injuries. In addition, musculoskeletalillness not related to work is the leading

cause of sickness absence in the UK andone of the highest categories of health-care spend in the US.

In response to these challenges, GSK hasdeveloped an ergonomics strategy up to2010, and created and appointed a newposition of a full-time professionalergonomist. With this appointment at theend of 2004 we will refine our strategyand programmes going forward.

Our approach to managing ergonomicissues is a collaborative one involvingEmployee Health Management staff,safety professionals, engineers, linemanagers and human resourcesfunctions.

In 2004, 106 sites carried out 3,243office workstation risk assessments usingour on-line ergonomics risk assessmenttool. This has now been translated intoFrench, Italian, Polish, Portuguese andSpanish and is available on our intranet.

During the year, we also started work todevelop a specific ergonomics risk assess-ment and control tool for non-officebased employees. This will be piloted inthe US before being extended globally.

A key part of our strategy for 2005 andbeyond is to establish employee-ledergonomic improvement teams at all GSKsites. In the UK, we now have such teamsat thirteen sites. In 2004, these sitesachieved a 40% reduction in muscu-loskeletal injuries and illnesses.

Over 80 examples of ergonomics bestpractice have been developed and sharedon our intranet. We also created a newarea on our intranet for people withergonomics responsibilities to discussissues, share ideas and access resources.

Health Programmes (cont.)

142

In 2005, the GSK ergonomics guidancewill be updated to reflect the growingamount of knowledge and expertise inthis field. We also plan to incorporateergonomic principles into our design toolkits for new equipment and processes.

Our manufacturing site in Barnard Castle,UK, was awarded 1st place in the safetycategory of our EHS Excellence Awardsfor its ergonomic improvements. See case study on page 145.

See more on our approach to ergonomics on page 29.

Occupational Hygiene andControl of Chemical Exposure In 2004, there were 9 cases of respiratoryor dermal (skin) illness resulting in losttime and 115 non-lost time cases, mainlydue to exposure to chemicals. Together,they accounted for 28% of work-relatedillnesses.

In 2004, we developed a strategy oncontrol of chemical exposure up to 2010.This sets out a plan of action for achiev-ing our 2010 goal of a ‘shirt sleeve’working environment, i.e. a workplacewhere containment of chemicals duringmanufacture replaces the need forpersonal protective equipment.

During the year we surveyed all our sitesto review the way they handle chemicalsand control exposure to the most potentcompounds (those with an exposure limitless than 100 micrograms per cubicmetre. Note - a microgram is onemillionth of a gram). This has helped usto understand our current position andset priorities for the future.

We have introduced new tools to helpsites calculate the cost of differentoptions for controlling exposure tochemicals. This has resulted in a betterunderstanding of the true costs ofcontrol strategies and frequently demon-strates that engineering controls, includ-ing containment systems, are more costeffective than traditional control methodsof extraction and personal protectiveequipment. A number of our sites haveachieved significant savings by installingnew containment systems. For example,in Parma, Italy, a new containmentsystem for a toxic compound for treatingcancer led to savings of £1.4 million. InDungarvan, Ireland, a new enzymecontainment solution led to financialsavings of £0.2 million.

To share best practice across our sites, wehave made available on our intranet site43 engineering design kits for controllingchemical exposures (solutions already inexistence that we know work) and 10pre-engineered solutions (new designs).We are also working to develop newtechnologies that make it easier tocontain highly potent compounds.

We continue to refine the way we assessthe EHS hazards of materials andintegrate this into our research anddevelopment process. In 2004, ourexperts established new occupationalexposure limits for more than 40 materi-als and environmental limits based onscientific data for more than 300 materials.

A task force has been established in ourantibiotic business to improve control ofchemical exposures during manufacture.We are also addressing the challenging


143

task of controlling exposure to the mosthazardous category of compounds duringthe manufacture of the final formulationof medicines that go to patients.

As with research into new medicines,testing of material hazards may involveanimal experiments. GSK is committed tothe principle of the ‘three Rs’ to reduce,refine and replace animal experiments.See more on occupational chemicalhazard evaluation and animal testing on page 121.

See more on our approach toOccupational hygiene and control ofchemical exposures on page 29.

HIV/AIDS(Not verified)

In 2004, we continued to provideantiretroviral treatment (ARV) to all GSKemployees (full and part time) and theirfamilies in the developing world wheretreatment is not provided adequately orconsistently by the local healthcaresystem.

We also developed a number of aware-ness-raising initiatives. For example, in2004, our factory in Nairobi, Kenya,worked with the National AIDS Trust inthe UK to develop HIV/AIDs educationalmaterials. This was funded by our PositiveAction Programme which providessupport to communities around theworld affected by HIV/AIDs.

We also offer preferentially priced ARVsto other employers in Sub-Saharan Africawho provide care and treatment for staff.


144



145

The new isolator is one of 80 ergonomic improvement

projects at Barnard Castle

We have taken several initiatives to reduce ergonomic risks at ourBarnard Castle site in northernEngland in 2004. The site won firstplace for safety in our 2004 internalEnvironment, Health and Safetyawards for excellence.

The Ergonomic Improvement Team(EIT) was formed at the site in 2001to combat increasing lost timeillnesses and injuries related tomusculoskeletal disorders such asrepetitive strain injury. It includes 13employees from a range of differentdepartments across the site.

Ergonomics are considered in thedesign of new equipment - weconduct risk assessments anddiscomfort surveys, and consulttrained local ergonomic experts.

We encourage employees to beaware of ergonomics and have seena 160% increase in ergonomichazards reported. The EIT hasproduced two ergonomics manualsfor employees, an awareness train-ing package and completed 80improvement projects in a threeyear period (2002-2004) includingthe ones described below.

Warehouse employees operatingvery narrow aisle (VNA) hi-rackertrucks complained of sore backs andwrists. The trucks were more thanten years old, so we decided to buy

a new fleet at a total cost of £347,000($635,000), primarily to improve opera-tor comfort. The trucks have bettercontrols that require less effort tomanoeuvre, have more headroom toallow drivers to sit or stand comfort-ably, and fully adjustable seatsdesigned to provide good backsupport. They are also more efficientand use less energy to operate.

We consulted employees whenpurchasing and installing a new isolator (to be used for the biologicaltesting of products) in order to identifyand minimise ergonomic risks.Responding to their comments, wemodified the design of the isolator to minimise the amount of bending,twisting and stretching necessary tooperate it.

In 2003, the site achieved its best everEHS performance, with 3.4 millionhours worked without a lost timeinjury or illness. The model developedat Barnard Castle is being rolled outacross other GSK sites.

Improving Ergonomics at our Barnard Castle Site

We systematically assess risks to antici-pate potential accidents, and putprogrammes in place to minimise them.We also learn from investigating thecauses of accidents and make improve-ments accordingly. In 2004, we intro-duced a number of new initiatives ondriver safety and process safety.

Driver Safety In 2004, there were 113 driving accidents(with lost time), which accounted for22% of lost time injuries. Our sales repre-sentatives drive long distances every yearand are therefore particularly at risk ofdriving accidents.

Our Global EHS standard onOccupational Travel includes require-ments on driver safety. In 2004, wedeveloped 11 technical instructiondocuments to help GSK businessescomply with the standard. These cover a wide range of topics including drivertraining, fitness to drive, vehicle selection,risk assessment, insurance, accidentreporting, driver ergonomics, and drivingand the environment. We monitorcompliance with the standard throughinternal audits and self assessmentquestionnaires.

GSK also produced a number of tools tohelp commercial fleet managers improvedriver safety. New driver safetyprogrammes for sales representativeswere introduced in 18 countries(Belgium, Bosnia, Brazil, Chile, Croatia,the Czech Republic, France, Germany,Hungary, Ireland, Italy, Lithuania, Nigeria,Slovenia, South Africa, Spain, Sri Lankaand Switzerland). More stringent require-ments, such as additional training, wereadded to existing programmes in a

number of countries (Australia, Canada,Japan, Poland and Romania and the US).In the UK, a comprehensive driver safetyprogramme was developed in 2004 readyfor roll-out to the three GSK commercialbusiness units in January 2005. We willcontinue to expand driver safetyprogrammes throughout commercialoperations in the next few years.

In a few countries, we provide motor-bikes or scooters for employees. In 2004,a GSK Motorbike Rider Safety Manualwas produced. This was distributed inlocal languages to employees in countrieswhere motorbikes are widely used,including Bangladesh, India, Indonesia,Pakistan and Vietnam. These countrieshave now also fully implemented theGSK requirement for every driver of amotorbike to wear a helmet. We willcontinue to follow up and monitor theimplementation of the motorbike safetyprogramme.

See more on our approach to driversafety in EHS Programmes in GSKCommercial on page 27.

Safety Programmes

146

Learn More About

• EHS Programmesin GSKCommercial.

• Our approach toprocess safetyand safetyengineering

• Download oursafety datasheets

• Safe transport of materials

Process Safety and SafetyEngineeringOur process safety programme ensuresthat safety is built into our manufacturingprocesses. A Process Hazard Analysis(PHA) must be completed before anynew project is carried out. In 2004, welaunched a new Failure Mode and EffectsCriticality Analysis (FMECA) system tohelp engineers develop safer processes.

See more on our approach to processsafety and safety engineering on page31.

We have developed safety data sheets(SDSs) for more than 1,200 of ourproducts. Some of these are available onour website. In 2004, we developed anemail notification tool which automatical-ly keeps employees up-to-date withchanges to SDSs. We also started tomake environmental testing data avail-able on our SDSs.

In 2004, we also launched the HazClassSystem to help track hazardous materialshipments worldwide and ensure the safetransportation of over 10,000 materialsper month. See more on safe transportof materials on page 25.

Safety Programmes (cont.)

147

Our supply chain is complex. It rangesfrom major strategic relationships withcontract manufacturers that make finalmedicines for us to suppliers of keymaterials.

EHS AuditsWe conduct regular EHS audits of ourkey suppliers to check they comply withour EHS standards and key legislation. In2004, we carried out 35 site-based EHSaudits of existing and potential suppliers.We found a wide variation in perform-ance across the sites audited. The lowestscore was 22% and the highest was92%. We make recommendations tosites following the audits and have aprocess to monitor progress, with aparticular focus on poorly performingsites.

In 2004, three potential key suppliersachieved unacceptable EHS scores (lessthan 30%) and therefore we did notsource from them. No existing supplierscored below 30%.

We found that health and safety wasgenerally well managed at supplier sitesin Europe and North America. However,we identified some challenges in emerg-ing economies, especially in areas relatingto fire prevention and response, occupa-tional hygiene and control of chemicalexposure, identification of hazards andrisks, and systems for reporting andinvestigating incidents. See suppliers onpage 122 for more about our EHS audits

Supplier PerformanceWe have approximately 80 centrallymanaged key suppliers, which includeboth contract manufacturers and suppliers of materials.

We are working towards reporting thehealth and safety performance of ourcontract manufacturers. This is a moredifficult process than collecting data fromour own sites because contract manufac-turers are independently managed.

In 2004, we collected health and safetydata from 13 major contract manufactur-ers. This data is not included in the verification by ERM.

Employees at the 13 contract manufac-turers who reported health and safetydata worked a total of 12.8 million hourson manufacturing GSK products in 2004.

Lost Time Injury and Illness:There were 65 lost time injuries and 16 lost time illnesses corresponding to a combined rate of 0.64 per 100,000hours worked.

Injury and Illness Without Lost Time:There were 121 injuries without lost timeand 22 illnesses without lost time corre-sponding to a combined rate of 1.11 per 100,000 hours worked.

Calendar Days Lost from Injury and Illness:There were 1,540 lost days from injuriesand 84 lost days from illnesses correspon-ding to a combined rate of 12.71 per100,000 hours worked.

Suppliers

148

ERM (Environmental ResourcesManagement Limited) was asked by GSKto independently review the environ-ment, health and safety (EHS) sections ofits 2004 Corporate Responsibility report(at Section 2 ‘Employment Practice’ andSection 11 ‘Caring for the Environment’)and supporting background informationprovided at GSK.com.

This is the fourth year that ERM hasverified GSK’s EHS reporting. The objec-tives of our review were to: check thatthe information presented is accurate,and that it represents GSK’s performancefairly; critically review the completenessand relevance of the information present-ed; and assess the effectiveness of GSK’s

data management systems.All pages that containverified EHS data aremarked with the following symbol.

We have focused on understandingGSK’s EHS data management and report-ing processes and EHS performance. Theassessment covered 22 percent of GSKmanufacturing sites and 17 percent ofthe R&D facilities, expanding ERM’scoverage of sites compared to 2003.

Overall FindingsSubject to the comments and scope setout below, we believe GSK’s CorporateResponsibility report covers the key EHSissues that interested parties need toknow to inform decision making (i.e. isrelevant), does not avoid major issues (i.e.is complete) and fairly reflectsprogrammes and performance on theground (i.e. is accurate).

ERM ScopeBetween November 2004 and March2005, ERM:1. reviewed EHS data management and

reporting processes, and performancechanges, at a cross-section of sites,through four site visits and 20telephone interviews;

2. interviewed personnel responsible fordata collation in Corporate EHS(CEHS) and checked sample groupdata;

3. interviewed corporate representativesto obtain supporting information onthe following EHS programmes: acqui-sitions and divestitures, contaminatedland, climate change and ozonedepleting potential, auditing of suppli-ers and contract manufacturers, andEHS reporting by the Commercialbusiness support team;

4. participated in the final CEHS data-checking and review process under-taken after the sites had submitted all EHS data;

5. checked that the EHS sections of the2004 Corporate Responsibility reportreflect our findings.

FindingsRelevance and CompletenessOverall, the EHS sections of the 2004Corporate Responsibility report cover thekey issues that are relevant to GSK’sbusiness.

Each year, ERM makes recommendationsfor improvement. In response to an ERM recommendation made in theSustainability in Environment, Health &Safety report 2003, GSK has attemptedto collect information on the reasons for

Verification Statement

149

changes in site EHS performance. ERMhas noted improvement to GSK’s report-ing of the reasons for performancechange in the 2004 EHS report sections.

We have also noted progress made in2004 in relation to GSK’s reporting oftransport-related greenhouse gasemissions.

In 2004, GSK obtained EHS performancedata from 14 contract manufacturers(versus seven in 2003), as part of itseffort to quantify GSK’s broader ‘EHSfootprint’. GSK has focused on collectingkey EHS indicator data from business-critical contract manufacturers (this datawas not verified by ERM).

AccuracyThis year, corporate data checkingprocesses have been strengthened toincrease the quality of the data, throughinvolvement of additional GSK personneland ERM’s participation in the finalchecking process. GSK also observedERM’s verification process at one site visit.Next year, GSK proposes to use its myEHSdatabase system to track data-checkingactions with each site.

During 2004, we have seen examples ofincreased reporting of illness and injurydata by sites, which may in part be dueto improved awareness as a result of theintroduction of the myEHS ‘Incidents’database. Associated training has beenprovided to GSK personnel at approxi-mately 100 sites.

ERM identified three material datainaccuracies relating to wastewater quality (COD), wastewater volume, and production use of ozone depletingsubstances. These were subsequently

addressed by GSK to ensure accuratereporting in the 2004 CorporateResponsibility report.

ERM identified potentially material under-reporting of EHS data (in particular injuryand illness data) by GSK’s Commercialbusiness, which includes office-based andfield sales force staff.

ResponsivenessGSK has reported that stakeholderswould like GSK to prepare a combinedCorporate Responsibility report incorpo-rating EHS and would like to betterunderstand management and perform-ance of a number of non-financial issues.In response, GSK has produced this singleweb-based Corporate Responsibilityreport, and is in the process of preparingposition papers on a selection of issues(e.g., climate change).

RecommendationsERM recommends that GSK:• builds on work undertaken in 2004

to strengthen internal reportingprocesses, better understand thereasons for EHS performance changesand enable more consistent andexplicit external reporting;

• further improves collection and reporting of performance data fromcontract manufacturers and suppliers,focussing on those which are businesscritical and those with the greatestEHS risk profile;

• improves the accuracy of environmen-tal key performance data by morecomprehensively checking complete-ness of data reported by the operations;

Verification Statement (cont.)

150

• supports key operations to moreaccurately monitor material flows anddischarges related to key environmen-tal performance indicators;

• assesses the potential for materialdata inaccuracies resulting fromunder-reporting by GSK’s Commercialoperations and puts in place improve-ment programmes to obtain a morecomplete data set;

• reviews the limitations of EHSperformance data, in particular thepotential scale of statistical uncertain-ty for target-related key EHS perform-ance data, including transport derivedemissions of greenhouse gases.

ERMMarch 2005

Verification Statement (cont.)

151

This table shows which elements of theGlobal Reporting Initiative guidelines arecovered in our report or elsewhere on theGSK website.

GRI Index

152

GRI Covered? LinkGuideline

1.1 Core

Statement of the organisa-tion’s sustainability visionand strategy regarding itscontribution to sustainabledevelopment

Yes

CR Principles

EHS/ ManagementFramework/Vision

1.2 Core

Statement from CEO (orequivalent senior manager)describing key elements ofthe report

Yes CEO Statement

1. Vision and Strategy

2.1 CoreName of reporting organisation

Yes CR Report 2004

2.2 Core Major products and services Yes Products

2.3 CoreOperational structure of theorganisation

Yes Annual Review

2.4 Core

Description of majordivisions, operating compa-nies, subsidiaries and jointventures

Yes About GSK

2.5 CoreCountries in which theorganisation’s operations are located

Partial

Partial List

Map for R&D Locations:Worldwide Locations

2.6 CoreNature of ownership; legalform

Yes Annual Report

2.7 Core Nature of markets served Yes Annual Report

2.8 CoreScale of the reporting organisation

Annual Review

Number of employees YesEmployment Practices

Annual Report

Products/services offered Products

Annual Report

2. Profile

2.16 Core

Explanation of the natureand effect of any re-state-ments of information provid-ed in earlier reports, and thereasons for such re-state-ment

No

2.13 CoreBoundaries of report and anyspecific limitations on thescope

Yes About This Report

GRI Index


Net sales YesAbout GSK

Annual Report

Total capitalisation brokendown in terms of debt and equity

Partial Annual Report

2.9 Core List of stakeholders YesEngagement WithStakeholders

2.10 CoreContact person(s) for thereport, including e-mail andweb addresses

Partial (no contact name)

Feedback

2.11 CoreReporting period (e.g., fiscal/calendar year) for informa-tion provided

Yes About This Report

2.12 CoreDate of most recent previous report (if any)

Yes

Previous reports are availablefor download:

CR Reports Downloads

2.14 Core

Significant changes in size,structure, ownership, orproducts/services that haveoccurred since the previousreport

NoNo significant changes since last report.

2.15 Core

Basis for reporting on jointventures, partially ownedsubsidiaries, leased facilities,outsourced operations andother situations that cansignificantly affect compara-bility from period to periodand/or between reportingorganisations

YesAbout This Report

Contractors’ Performance

Report Scope

153

GRI Index

154


2.17 Core

Decisions not to apply GRI principles or protocols inthe preparation of the report

Yes

The report provides a GRIIndex (this table) thatindicates which GSK indica-tors are also GRI indicators.

The issues covered are thoseconsidered most importantby our stakeholders.

2.18 Core

Criteria /definitions used inany accounting for econom-ic, environmental, and socialcosts and benefits

Yes Throughout the report.

2.19 Core

Significant changes fromprevious years in themeasurement methodsapplied to key economic,environmental and socialinformation

YesAny changes have beenindicated next to relevantcharts.

2.20 Core

Policies and internalpractices to enhance andprovide assurance about theaccuracy, completeness, andreliability that can be placedon the sustainability report

Yes

We have consulted widelywith our stakeholders aboutwhat should be in thereport:

Engagement WithStakeholders

EHS StakeholderEngagement

EHS information has beenexternally verified:


2.21 Core

Policy and current practicewith regard to providingindependent assurance forthe report

Yes

EHS information has beenexternally verified:


Report Profile

GRI Index

155


2.22 Core

Means by which report userscan obtain additional infor-mation and reports abouteconomic, environmentaland social aspects of theorganisation’s activities,including facility-specificinformation (if available)

Yes

More information aboutcorporate responsibility,community partnerships,economic performance,financial results, researchand development is availableon the website.

Links are provided whererelevant throughout thereport. Previous reports areavailable for download:

CR Reports Downloads

3.1 Core

Governance structure of theorganisation, including majorcommittees under the boardof directors that are respon-sible for setting strategy andfor oversight of the organi-sation

Yes

Managing CR

EHS Management

About GSK/CorporateGovernance

3.2 Core

Percentage of the board of directors that areindependent, non-executivedirectors

YesAbout GSK/CorporateGovernance

3.3 Core

Process for determining theexpertise board membersneeded to guide the strate-gic direction of the organisa-tion, including with regardto environmental and socialrisks and opportunities

YesAbout GSK/CorporateGovernance

3.4 Core

Board-level processes foroverseeing the organisation’sidentification and manage-ment of economic, environ-mental, and social risks andopportunities

Yes Managing CR

3.5 Core

Linkage between executivecompensation and achieve-ment of the organisation’sfinancial and non-financialgoals

Yes Annual Report

3. Governance Structure and Management Systems

GRI Index

156


3.6 Core

Organisational structure andkey individuals responsiblefor oversight, implementa-tion, and audit of economic,environmental, social andrelated policies

YesManaging CR

EHS Management

3.7 Core

Mission and values state-ments, internally developedcodes of conduct or princi-ples, and policies relevant toeconomic, environmentaland social performance andthe status of implementation

Yes

About GSK/CorporateGovernance/Corporate Ethics & ComplianceProgramme

Business Ethics/Code of Conduct

EHS/ManagementFramework/EHSManagement Policy

Managing CR

EHS Management

We report our progressagainst our CR Principlesthroughout the CR report.

3.8 Core

Mechanisms for shareholdersto provide recommendationsor direction to the board ofdirectors

YesAbout GSK/CorporateGovernance/Shareholders

3.9 CoreBasis for identification and selection of major stakeholders

Yes



3.10 Core

Approaches to stakeholderconsultation reported interms of frequency ofconsultations by type and bystakeholder group

Yes


Engagement With Investors

Stakeholder Engagement

GRI Index

157



3.11 CoreType of information generated by stakeholderconsultations

Yes

Engagement on CorporateResponsibility

Engagement With Investors


3.12 CoreUse of information resulting from stakeholderengagements

Yes

Engagement on Corporate Responsibility


3.13 Core

Explanation of whether andhow the precautionaryapproach or principles is addressed by the organisation

No

3.14 Core

Externally developed, volun-tary economic, environmen-tal and social charters, setsof principles, or other initia-tives to which the organisa-tion subscribes or which itendorses

Yes

We are committed toupholding the principles inthe UN Universal Declarationof Human Rights, OECDGuidelines for Multinationalenterprises, and the ILO corelabour conventions:

Human Rights

We use and refer to the GRIguidelines (this table).

3.15 Core

Principle memberships inindustry and business associ-ations, as well as national/international advocacyorganisations

Yes Leadership and Advocacy

3.16 Core

Policies and/or systems formanaging upstream anddownstream impacts, including:

YesEHS Management

Employee Code of Conduct

Overarching Policies and Management Systems

GRI Index

158


Supply chain managementas it pertains to outsourcingand supplier environmentaland social performance

Yes

Human Rights/Suppliers

Environment/Suppliers andContractors

Product and service steward-ship initiatives

Yes Product Stewardship

3.17 Core

Reporting organisation’sapproach to managingindirect economic, environ-mental and social impactsresulting from its activities

Human Rights/Suppliers

Environment/Suppliers and Contractors

3.18 Core

Major decisions during thereporting period regardingthe location of, or changesin, operations

Yes Annual Report

3.19 Core

Programmes and procedurespertaining to economic,environmental and socialperformance. Include: priori-ty and target setting, majorprogrammes to improveperformance, internalcommunication and training,performance monitoring,internal and external audit-ing, senior managementreview

Yes

Programmes describedthroughout the report.Performance indicatorsreported in:

Summary of Indicators

EHS Performance DataSummary

EHS Progress TowardsTargets

Internal communication on CR covered in:

EHS Training and Awareness

Internal Communication

3.20 Core

Status of certificationpertaining to economic,environmental and socialmanagement systems

Yes EHS Audits and Certification

GRI Index

159


4.1 Core

Provide a table identifyinglocation of each element ofthe GRI Report Content(section and indicator) in thereport

Yes This table.

4. GRI Content Index

EC1 Core Net sales YesAbout GSK and

Annual Report

EC2 Core

Geographic breakdown ofmarkets. (For each productor product range, disclosenational market share bycountry where this is 25% ormore. Disclose market shareand sales for each countrywhere national sales repre-sent 5% or more of GDP)

Yes Annual Report

5. Performance: Economic

Customers

EC3 CoreCost of all goods, materials,and services purchased

No

EC4 Core

Percent of contracts thatwere paid in accordancewith agreed terms (e.g.,scheduling of payments,form of payment, etc.)

PartialPayment performancecovered in Annual Report(page 73)

EC11 AdditionalSupplier breakdown byorganisation and country

No

Suppliers

Economic Indicators

GRI Index

160


EC5 Core

Total payroll and benefitsexpense (incl. wages,pension, redundancypayments)

Yes Annual Report

Employees

EC6 Core

Distributions to providers ofcapital broken down byinterest on debt and borrow-ings, and dividends on allclasses of shares

Yes Annual Report

EC7 CoreIncrease/ decrease inretained earnings at end ofperiod

Yes Annual Report

Providers of Capital

EC8 CoreTotal sum of taxes of alltypes paid, broken down bycountry

Partial

Data broken down for UK and overseas:

Annual Report

EC9 CoreSubsidies received brokendown by country or region

No

EC10 Core

Donations to community,civil society, and othergroups broken down interms of cash and in-kinddonations per type group

YesValue of CommunityInvestment

EC12 Additional

Total spent on non-corebusiness infrastructure devel-opment, e.g., hospital/schoolfor employees and theirfamilies

No

Public Sector

EC13 AdditionalDescribe the organisation’sindirect economic impacts

No

Indirect Economic Impacts

GRI Index

161


EN1 CoreTotal materials use otherthan water by type (report intonnes, kg or volume)

No

EN2 Core

Percentage of materials usedthat are wastes (processed orunprocessed) from sourcesexternal to the reportingorganisation. (Refers to bothpost-consumer recycled material and waste fromindustrial sources)

No Data collected for internal waste recovery andrecycling only.

Performance: Environmental

Materials

EN3 Core

Direct energy use segmentedby primary source. Report onall energy sources used bythe reporting organisationfor its own operations aswell as for the productionand delivery of energyproducts (e.g., electricity or heat) to other organisations

Partial

Data reported for total directenergy use - not brokendown by primary source:

Energy Consumption

EN4 Core

Indirect energy use. Report on all energy used toproduce and deliver energyproducts purchased by thereporting organisation (e.g.,electricity or heat)

Yes Energy Consumption

EN17 AdditionalInitiatives to use renewableenergy sources and increaseenergy efficiency

Partial Examples only:

Energy Consumption

EN18 Additional

Energy consumptionfootprint (i.e. annualisedlifetime energy requirements)of major products

No

Energy

GRI Index

162


EN19 Additional

Other indirect(upstream/downstream)energy use and implications,such as organisational travel,product life-cycle manage-ment and use of energy-intensive materials

Yes Transport

EN5 Core Total water use Yes Water Use

EN20 Additional

Identify water sources andrelated ecosystems/habitatssignificantly affected by theorganisation’s use of water

Partial

Number of sites in waterstressed regions:

Water Use

EN21 Additional

Annual withdrawals ofground and surface water asa percent of annual renew-able quantity of water avail-able from the sources

No

EN22 Additional

Total recycling and reuse ofwater. Includes wastewaterand other used water (e.g.,cooling water)

No Report volume of waste-water & COD.

EN6 CoreLocation and size of landowned, leased or managedin biodiversity-rich habitats

No

EN7 Core

Description of the majorimpacts on biodiversityassociated with the organisa-tion’s activities and/orproducts and services interrestrial, freshwater, andmarine environments

Yes Issues/Biodiversity

EN23 Additional

Total amount of land owned,leased, or managed forproduction activities orextractive use by the organi-sation

No

Biodiversity

GRI Index

163


EN24 AdditionalAmount of impermeablesurface as a percentage ofland purchased or leased

No

EN25 Additional

Impacts of organisation’sactivities and operations onprotected and sensitive areas(e.g., IUCN protected areascategories 1-4, worldheritage sites and biospherereserves)

No

EN26 Additional

Changes to natural habitatsresulting from the reportingorganisation’s activities andpercentage of habitatprotected or restored

No

EN27 Additional

Objectives, programmes andtargets for protecting andrestoring native ecosystemsand species in degradedareas

Partial Position on biodiversity:

Issues/Biodiversity

EN28 Additional

Number of IUCN Red Listspecies with habitats in areasaffected by the reportingorganisation’s operations

No

EN29 Additional

List business units currentlyoperating or planning opera-tions in or around protectedor sensitive areas

No

EN8 Core

Greenhouse gas emissions(CO2, CH4, N20, HFCs, PFCs,SF6 ). Report separate subto-tals for each gas in tonnes ofCO2 equivalent for the following:

Partial

CO2 only:

Energy and Climate Impact

direct emissions from sourcesowned or controlled by the reporting entity

Partial CO2 only:

Energy Consumption

Emissions, Effluents and Waste

GRI Index

164


indirect emissions fromimported electricity heat orsteam

Partial CO2 only:

Energy Consumption

EN9 Core

Use and emissions of ozone-depleting substances. Reporteach figure separately inaccordance with MontrealProtocol Annexes A, B, Cand E in tonnes of CFC-11equivalents

Yes Ozone Depletion

EN10 CoreNOx, SOx and other signifi-cant air emissions by type

YesEnergy Consumption

Volatile Organic Compounds

EN11 Core

Total amount of waste bytype and destination (i.e. themethod by which it is treat-ed, including composting,reuse, recycling, recovery,incineration or landfilling)

Yes

Hazardous Waste

Non-Hazardous Waste

Recycling

EN12 CoreSignificant discharges towater by type

Partial

Total waste water volumeand COD:

Waste Water

EN13 Core

Significant spills of chemi-cals, oils and fuels in termsof total number and totalvolume (significance definedin terms of both the size ofthe spill and impact on thesurrounding environment)

Yes Compliance

EN30 Additional

Other relevant indirectgreenhouse gas emissions,i.e. as a consequence of thereporting entity but occurfrom sources owned orcontrolled by another entity

Partial Contractors’ Performance

EN31 Additional

Identify all production, trans-port, import or export of anywaste deemed "hazardous"under the terms of the BaselConvention Annex I, II, III and VIII

No

GRI Index

165


EN32 Additional

Identify water sources andrelated ecosystems/habitatssignificantly affected by theorganisation’s discharges ofwater and runoff

No

EN33 Additional

Performance of suppliersrelative to environmentalcomponents of programmesand procedures described inresponse to ManagementSystems and Governancesection of GRI Guidelines

Yes Suppliers and Contractors

Suppliers

EN14 Core

Significant environmentalimpacts of principle productsand services (describe andquantify where relevant)

Partial

Report ozone depletionpotential from metered doseinhalers:


Pharmaceuticals in theEnvironment

EN15 Core

Percentage of the weight ofproducts sold that isreclaimable at the end of theproducts’ useful life andpercentage that is actuallyreclaimed

No

Products and Services

EN16 Core

Incidents of and fines fornon-compliance with allapplicable internationaldeclarations/conventions/treaties, and national, subna-tional, regional and localregulations associated withenvironmental issues (explainin terms of countries ofoperation)

Yes Compliance

Compliance

GRI Index

166


EN34 Additional

Describe significant environ-mental impacts of trans-portation used by reportingorganisation for logisticalpurposes

Yes

Global warming potentialfrom transport:

Transport

Transport

EN35 Additional

Total environmental expendi-tures by type (explain defini-tions used for types ofexpenditures)

Yes EHS Costs

Overall

LA1 Core

Breakdown of workforce byregion/country, employmenttype (full/part time) andemployment contract(permanent/ temporary)

Partial

Total number of employeesand countries:

Employment Practices

LA2 Core

Net employment creationand average turnoversegmented by region/country

No

LA12 Additional

Employee benefits beyondthose legally mandated (e.g.,contributions to health care,maternity, education andretirement)

Yes

Information on ourTotalReward programme:

Your Reward Package

Performance: Labour Practices and Decent Work

Employment

LA3 Core

Percentage of employeesrepresented by independenttrade union organisations orother bona fide employeerepresentatives, brokendown geographically, ORpercentage covered bycollective bargaining agree-ments

Partial Freedom of Association

Labour/Management Relations

Social Indicators

GRI Index

167


LA4 Core

Policy and procedures involv-ing information, consultationand negotiation withemployees over changes inthe organisation’s operations(e.g., restructuring)

Partial Internal Communication

LA13 Additional

Provision for formal workerrepresentation in decisionmaking or management,including corporate gover-nance

Partial

Information on consultationforums:

Internal Communication

LA5 Core

Practices on recording andnotification of occupationalaccidents and diseases, andhow they relate to the ILOCode of Practice onRecording and Notificationof Occupational Accidentsand Diseases

Partial Health and Safety

LA6 Core

Description of formal jointhealth and safety commit-tees comprising manage-ment and worker represen-tatives and proportion ofworkforce covered

No

Health & safety managementis covered in:


LA7 Core

Standard injury, lost day andabsentee rates and numberof work-related fatalities(including subcontractedworkers)

Yes

Injury and Illness Rates

Health & Safety/Suppliers & Contractors

LA8 Core

Description of policies orprogrammes (for theworkplace and beyond) onHIV/AIDS

Yes

Programmes for employees:

Health Programmes

HIV/AIDS

Programmes to increaseaccess to HIV/AIDS medicinesin developing countries:

Access to Medicines

Community programmes forHIV/AIDS:

Major Health Initiatives

Health and Safety

GRI Index

168


LA14 Additional

Evidence of substantialcompliance with the ILOGuidelines for OccupationalHealth Management Systems

Partial

Health & safety managementis covered in:


LA15 Additional

Description of formal agree-ments with trade unions orother bona fide employeerepresentatives coveringhealth and safety at workand proportion of theworkforce covered

No

LA9 Core

Average hours of trainingper year per employee bycategory of employee (e.g.,senior/middle management,professional, technical.)

Partial Employee Development

LA16 Additional

Description of programmesto support the continuedemployability of employeesand to manage careerendings

Partial Employee Development

LA17 Additional

Specific policies andprogrammes for skillsmanagement or for lifelonglearning

Yes Employee Development

Training and Education

LA10 Core

Description of equal oppor-tunity policies orprogrammes, as well asmonitoring systems toensure compliance andresults of monitoring

Yes Diversity

LA11 Core

Composition of seniormanagement and corporategovernance bodies (includingboard of directors), includingfemale/male ratio and otherindicators of diversity asculturally appropriate

Yes

Data on gender diversity and ethnicity:

Diversity

About GSK/CorporateGovernance

Diversity and Opportunity

GRI Index

169


HR1 Core

Description of policies,guidelines, corporate struc-ture and procedures to dealwith all aspects of humanrights relevant to thereporter’s operations, includ-ing monitoring mechanismsand results (state howpolicies relate to existinginternational standards suchas UDHR and the ILO’sFundamental Conventions)

Yes Human Rights

HR2 Core

Evidence of consideration ofhuman rights impacts as partof investment and procure-ment decisions, includingselection of suppliers/contractors

Yes Suppliers

HR3 Core

Description of policies andprocedures to evaluate andaddress human rightsperformance within thereporting organisation’ssupply chain and contractors

Yes Suppliers

HR8 Additional

Employees training on thereporter’s policies andpractices concerning allaspects of human rightsrelevant to the reporter’soperations

Yes Suppliers

Performance: Human rights

Strategy and Management

HR4 Core

Description of global policyand procedures/programmes preventing allforms of discrimination inthe reporter’s operations,including monitoring systemsand results

Partial Human Rights/Employees

Nondiscrimination

GRI Index

170


HR5 Core

Description of freedom ofassociation policy and extentto which it is universallyapplied independent of locallaws, and description ofprocedures/programmes toaddress this issue


Freedom of Association and Collective Bargaining

HR6 Core

Description of policy exclud-ing child labour as definedby the ILO Convention 138and extent to which thispolicy is visibly stated andapplied


Child Labour

HR7 Core

Description of policy toprevent forced and compul-sory labour and extent towhich this policy is visiblystated and applied

Yes Human Rights/Employees

Forced and Compulsory Labour

HR9 Additional

Description of appealpractices, including, but not limited to, human rights issues

Partial Global Integrity Helpline:

Human Rights/Employees

HR10 Additional

Description of non-retaliationpolicy and effective, confi-dential employee grievancesystem

YesEmployee Guide to Business Conduct

Disciplinary Practices

HR11 Additional

Human rights training forsecurity personnel (includingtype of training, number ofpersons trained and durationof training)

No

Security Practices

GRI Index

171


HR12 Additional

Description of policies,guidelines, and proceduresto address the needs ofindigenous people

Partial Traditional Knowledge

HR13 AdditionalDescription of jointlymanaged community griev-ance mechanisms/authority

No

HR14 Additional

Share of operating revenuesfrom the area of operationsthat are redistributed to local communities

No

Indigenous Rights

SO2 Core

Description of the reportingorganisation’s policy, proce-dures/management systems,and compliance mechanismsfor organisations andemployees addressingbribery and corruption

Yes

Standards of Ethical Conduct

Products and Customers

Business Ethics/PreventingCorruption

Bribery and Corruption

SO1 Core

Description of policies tomanage impacts on commu-nities in areas affected bythe reporting organisation’sactivities, as well as descrip-tion of procedures/programmes to address thisissue, including monitoringsystems and results (Includeexplanation of proceduresfor identifying and engagingin dialogue with communitystakeholders)

Yes

Access to Medicines

Community Investment

Major Health Initiatives

Community Partnerships

Supporting Education

SO4 AdditionalAwards received relevant tosocial, ethical and environ-mental performance

Yes

Community Investment

Employee InternalCommunications

Research and Development

Performance: Society

Community

GRI Index

172


SO3 Core

Description of reportingorganisation’s policy, proce-dures/management systemsand compliance mechanismsfor managing political lobby-ing and contributions

Yes

Business Ethics/PoliticalDonations

Leadership and Advocacy

SO5 Additional

Amount of money paid bythe reporter to politicalparties and institutionswhose prime function is tofund political parties or theircandidates

Yes

Business Ethics/PoliticalDonations

Annual Report

SO6 AdditionalCourt decisions regardingcases pertaining to anti-trustand monopoly regulations

Partial

Material issues:

Annual Report

Policy on anti-competitivebehaviour:

Business Ethics/Anti-Competitive Behaviour

SO7 Additional

Description of reportingorganisation’s policy, proce-dures/management systems,and compliance mechanismsfor preventing anti-competi-tive behaviour

Yes

Business Ethics/Anti-Competitive Behaviour

Business Ethics/Code ofConduct

Standards of EthicalConduct/Code of Conduct

Competition and Pricing

PR1 Core

Description of policy forpreserving customer healthand safety during use ofreporting organisation’sproducts and services, andextent to which this policy isvisibly stated and applied, aswell as description of proce-dures/programmes toaddress this issue, includingmonitoring systems and results

Yes

Patient Safety

Information on patient safetyduring clinical trials:

Research andInnovation/Conduct ofClinical Trials

Research andInnovation/Training andAuditing

Performance: Product Responsibility

Customer Health and Safety

GRI Index

173


PR4 Additional

Number and type ofinstances of non-compliancewith regulations concerningcustomer health and safety,including the penalties andfines for these breaches

NoBackground information:

Patient Safety

PR5 Additional

Number of complaintsupheld by regulatory orsimilar bodies to oversee orregulate the health andsafety of the reportingorganisation’s products and services

No

PR6 Additional

Voluntary code of compli-ance, product labels orawards with respect to socialand/or environmentalresponsibility that thereporter is qualified to use or has received

No

PR2 Core

Description of the reportingorganisation’s policy, proce-dures/management systems,and compliance mechanismsrelated to product informa-tion and labelling

Yes

Products and Customers/Marketing Codes of Practice

Products and Customers/Training and Monitoring

Public Disclosure of Trial Results

Patient Safety/Labelling of Medicines

PR7 Additional

Number and type ofinstances of non-compliancewith regulations concerningproduct information andlabelling, including anypenalties or fines for thesebreaches

No

PR8 Additional

Description of reporter’s policy,procedures/managementsystems, and compliancemechanisms related tocustomer satisfaction, includ-ing results of surveys measur-ing customer satisfaction

No

Information on engagementwith patient groups:

Leadership andAdvocacy/Patient Advocacy

Products and Services

GRI Index

174


PR9 Additional

Description of reportingorganisation’s policies, procedures/managementsystems and compliancemechanisms for adherenceto standards and voluntarycodes related to advertising

Partial

Information on marketingpractices:

Products and Customers

PR10 AdditionalNumber and types ofbreaches of advertising andmarketing regulations

Partial

Employees dismissed forbreaching marketing codesof practice:

Products andCustomers/Training andMonitoring

Advertising

PR3 Core

Description of reportingorganisation’s policy, proce-dures/management systemsand compliance mechanismsfor consumer privacy

No

PR11 AdditionalNumber of substantiatedcomplaints regarding breach-es of consumer privacy

No

Respect for Privacy

UKGlaxoSmithKline

Corporate Environment, Health and Safety980 Great West Road

BrentfordMiddlesexTW8 9GS

United Kingdom

USAGlaxoSmithKline

Corporate Environment, Health and Safety2200 Renaissance Blvd, Suite 105

King of PrussiaPennsylvania19406-2755

United States of America

© 2005 GlaxoSmithKline

Prepared by Nancy B. English, Ph.D. Director and Team Leader EHS Reporting

Corporate Environment, Health and Safety Send questions or comments to

[email protected]

glaxosmithkline plc - ehs report - 2004corporate responsibility: report 2004 caring for the...

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